Fact Sheet: Changi Airport Terminal 5 – Singapore<\/em><\/a><\/figcaption><\/figure>\n<\/div>\n\n\nACI World cautions that, while well-intentioned, such a tax risks undermining the air transport sector\u2019s critical role in driving economic development, global connectivity, and progress toward sustainability.<\/p>\n\n\n\n
\u201cWe fully support the global pursuit of sustainable development and climate resilience,\u201d said ACI World Director General Justin Erbacci.<\/p>\n\n\n\n
\u201cHowever, targeting aviation with additional taxes is likely to undermine the very connectivity and economic growth that support these goals. The aviation sector must be empowered \u2014 not penalised\u2014if we want to achieve long-term global progress.\u201d<\/p>\n\n\n\n
Aviation taxation threatens air connectivity <\/strong><\/p>\n\n\n\nTaxation on aviation has proven to hinder air connectivity and negatively impact regional economic growth. The economic benefits lost due to these taxes can be twice as large as the revenue governments collect from them. ACI research on the Taxation of International Air Transport and Airports estimates that the removal of the USD90 billion in taxes paid by aviation users would create 5.2 million jobs and USD180 billion in global GDP.<\/p>\n\n\n\n
New taxes, such as the one proposed, also risk impacting regions that are particularly dependent on air connectivity for trade, tourism, and broader development.<\/p>\n\n\n\n
Moreover, the eight States announced plans to invest \u201call or parts of the proceeds into resilient investments and fair transitions.\u201d However, there is a significant risk that these funds will be diverted to other uses rather than serving their intended purpose.<\/p>\n\n\n\n
New taxes risk undermining net-zero trajectory<\/strong><\/p>\n\n\n\nThe coalition of eight States announced it would work towards a \u201cbetter contribution of the aviation sector to fair transitions and resilience.\u201d However, the global aviation sector already is following an ambitious, coordinated plan to reach net zero carbon emissions by 2050, through the leadership of the International Civil Aviation Organization (ICAO), including the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)\u2014the international market-based system specifically designed to address aviation emissions.<\/p>\n\n\n\n
Call for fairer global solutions<\/strong><\/p>\n\n\n\nACI World joins ICAO, the International Air Transport Association (IATA), the Air Transport Action Group (ATAG), and others in cautioning against measures that extract value from aviation without reinvestment in its sustainable future. A globally fragmented approach\u2014such as a tax imposed by a “coalition of the willing” \u2014 could distort competition, undermine environmental integrity, and disproportionately impact developing economies that rely on air transport for growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
SINGAPORE, 10 July 2025: ACI World has expressed serious concerns regarding the decision by France, Kenya, Barbados, Spain, Somalia, Benin, Sierra Leone, and Antigua & Barbuda to launch a coalition ahead of COP30, focused on introducing a new tax on air transport. The proposed tax would focus on premium flyers as a means to fund […]<\/p>\n","protected":false},"author":22,"featured_media":253676,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[469,246],"tags":[],"class_list":{"0":"post-253675","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-airlines","8":"category-singapore"},"yoast_head":"\n
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