BERLIN (dpa-AFX): Taxes on airline tickets for flights departing from Germany will be reduced starting in July as planned. The Bundesrat has given final approval to the tax cut proposal, following previous passage by the Bundestag. Depending on the route, the levy will decrease by an amount between €2.50 and €11.40 per flight. Whether this leads to cheaper airfares remains to be seen, as it depends on whether airlines pass the savings on to passengers. Given the sharp rise in kerosene prices, such a move is considered doubtful.

The measure fulfills an agreement from the coalition treaty between the CDU/CSU and SPD to reverse the aviation tax increase implemented under the previous government. The tax cut will cost the state hundreds of millions of euros annually. According to the bill, revenue is expected to drop by €185m for the current year. By 2030, the annual shortfall is projected to reach €355m.

The extent of the tax reduction depends on the flight destination: for short-haul routes, the tax will drop from the current €15.53 to €13.03, for medium-haul routes from €39.34 to €33.01, and for long-haul flights from €70.83 to €59.43./jr/DP/stk