Belgian government scales back aviation tax increase to €7 after industry pressure

The Belgian federal government has softened its planned increase in the country’s aviation tax, opting to raise the levy from €5 to €7 per departing passenger instead of the previously announced €10. The decision follows weeks of criticism from airlines and airport operators, who warned that the higher tax would damage Belgium’s competitiveness and lead to capacity cuts.

The revised measure represents a significant compromise compared with the government’s original proposal. Under earlier budget plans, the embarkation tax on flights over 500 kilometres was due to double to €10 from 2027, aligning it with the tax already applied to shorter flights. That proposal triggered a strong reaction from the aviation sector, with carriers arguing that Belgium risked pricing itself out of the market compared with neighbouring countries.

Airlines warned of reduced connectivity

No airline was more vocal than Ryanair. The Irish low-cost carrier repeatedly warned that the planned tax increase would force it to reduce capacity in Belgium, cut routes and shift aircraft to lower-cost markets. Earlier this year, the airline announced plans to remove millions of seats from its Belgian operations over the coming years if the higher tax were implemented, arguing that passengers would ultimately bear the cost through higher fares.

Belgian airports also expressed concern that a €10 tax would place them at a competitive disadvantage against airports in neighbouring countries, particularly in northern France, the Netherlands and western Germany, where passengers often have alternative departure options within a relatively short driving distance.

A compromise between fiscal and economic objectives

By settling on a €7 rate, the federal government appears to be seeking a balance between raising additional budget revenue and limiting the impact on Belgium’s air connectivity.

Although the revised tax still represents a 40% increase compared with the current €5 levy, it is substantially lower than the originally planned doubling. The government is expected to continue generating additional tax income while reducing the risk of large-scale airline capacity cuts.

Whether the compromise will satisfy airlines remains to be seen. Carriers have consistently argued that aviation taxes discourage demand, reduce tourism and undermine economic competitiveness, while supporters of the measure contend that aviation should contribute more towards public finances and environmental policy objectives.

Limited impact on ticket prices

For most travellers, the increase is unlikely to have a major influence on travel decisions. A €2 increase represents only a small fraction of the total cost of an airline ticket, particularly on medium- and long-haul services. Nevertheless, low-cost carriers operating on ultra-competitive routes are expected to continue highlighting the cumulative effect of taxes, airport charges and regulatory costs on fares.

The decision also removes some of the uncertainty that had surrounded the 2027 tax regime. Airlines planning their future schedules now have greater clarity over the fiscal environment in Belgium, although the industry will continue to monitor whether further increases are considered in future budget negotiations.

The latest decision illustrates the delicate balance governments face between increasing tax revenues and maintaining the competitiveness of their aviation sector. While the tax will still rise, the reduction of the planned increase from €10 to €7 suggests that concerns expressed by airlines and airports have had a tangible influence on federal policy.