Swedish government cancels air ticket tax

Air traffic tax in Sweden will be abolished from July 2025

The Swedish government has announced that it will abolish the air passenger tax, introduced in 2018, as of July 1, 2025. This was recently confirmed by conservative Prime Minister Ulf Kristersson. The goal of this decision is to improve the competitiveness of Swedish airlines and make travel within the vast country easier.

Compatibility with climate policy emphasized

According to Kristersson, this move is "long-term compatible with climate policy." Despite the abolition of the tax, climate-friendly travel options will continue to be supported. The air passenger tax was originally introduced in 2018 by the center-left government to make air travel more environmentally friendly. The amount of the tax varied depending on flight distance.

International differences in air travel taxes

Sweden's Minister of Economic Affairs, Ebba Busch, pointed out that only a minority of EU countries impose an air travel tax. A look at Germany, however, shows a different picture: there, the tax was increased by around 25 percent in May 2023, leading to heated debates. The German Aviation Association (BDL) criticized that this increase was one of the main reasons why passenger air traffic in Germany has not recovered as quickly from the pandemic as in other European countries. Sweden's aviation industry is facing similar challenges, with the sector still operating at around 80 percent of pre-2019 levels.

Criticism from environmental organizations

The Swedish government’s decision has been met with sharp criticism from environmental groups. Daniel Kihlberg from the Swedish Society for Nature Conservation accused the government of abandoning the country’s climate efforts. The Swedish Climate Policy Council, an expert advisory panel to the government, had already warned in March that measures like the reduction of the fuel tax were jeopardizing the nation's climate goals.

The planned abolition of the air travel tax not only raises questions about climate policy but also has far-reaching economic and social implications.

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