Dutch authorities face court challenge to environmental tax

Dutch government is facing parallel lawsuits challenging its plan to levy a new environmental ticket tax on all passengers departing from domestic airports (ATWOnline, Oct. 2, 2007). The tax, which comes into effect July 1, amounts to €11.25 ($16.59) per passenger for EU destinations (with some exceptions) inside 2,500 km. and €45 for other flights. Amsterdam's Schiphol Group, together with Dutch travel bureau association ANVR, launched legal action to prevent the tax, while The Board of Airline Representatives in the Netherlands filed a separate though similar injunction request. The hearing is scheduled for March 5 at the Court of Justice in The Hague.

All three parties argue the tax violates Article 15 of the Chicago Convention, which states that "No fees, dues or other charges shall be imposed by any contracting state in respect solely of the right of transit over, or entry into or exit from the territory of any aircraft of a contracting state or persons or property thereon." In addition, they claim the Dutch government is wrong to claim the tax is "environmental" because it serves no particular environmental purpose. Moreover, BARIN notes, "within a short period of time, an EU-wide environmental measure for air traffic is expected: The Emission Trade System in 2012. KLM and Schiphol Airport have suggested to introduce a similar system in the Netherlands on a voluntary basis. . .but this has been rejected by the government for unclear reasons."

The trio claims the economic disadvantages of the ticket tax likely will be enormous. Netherlands is a small country and the tax will drive passengers to fly from nearby airports in Belgium and Germany. Independent research acknowledged by the government forecasts a drop in passengers in 2011 of 8%-10% at Schiphol and 11%-13% at other Dutch airports.