Sweden to abolish aviation tax amid debates on climate and competitiveness

The Swedish government and the Sweden Democrats have announced the abolition of the controversial aviation tax, effective from July 1, 2025. Initially introduced in 2018 to reduce the environmental impact of air travel, the tax will be removed to boost Sweden’s competitiveness, with expectations that domestic and European flight tickets will become about 80 SEK cheaper, and long-haul flights 325 SEK cheaper.

The decision has sparked concerns over potential increases in air traffic and emissions. Linda Lindberg, the Sweden Democrats’ group leader, acknowledged the environmental risks but emphasised the need for a competitive aviation industry for both businesses and individuals. Energy and Business Minister Ebba Busch added that the broader budget aims to reduce overall climate emissions, arguing that penalising individual families or jeopardising significant green projects is not the solution.

The aviation tax has been a contentious issue within the governing coalition, particularly between the Sweden Democrats and the Liberals, who disagree on climate policy. Climate and Environment Minister Romina Pourmokhtari of the Liberals had previously opposed the tax’s removal, advocating instead for alignment with the EU’s climate policies to ensure that aviation bears its environmental costs.

In response to the government’s decision, Swedavia, the state-owned company managing Sweden’s airports, welcomed the removal of the tax. CEO Jonas Abrahamsson criticised the tax for limiting Sweden’s air connectivity and economic growth while hindering the aviation industry’s necessary climate transition. He called for a unified effort to secure sustainable and competitive air travel, emphasising the need for innovation in biofuels, hydrogen, and electric aviation.