Another 'TAX' for those travelling to Germany.

German Air Passenger Duty

Aug 31, 2010
By Jens Flottau jens@flottau.com
FRANKFURT
Germany’s federal government is expected to approve of the much-criticized air passenger duty at a cabinet meeting in Berlin on Sept. 1.

The tax is part of a multi-billion package aimed at reducing the large federal deficit, which has widened as a result of the recent financial crisis.

The tax should add €1 billion ($1.27 billion) to the federal budget. Passengers boarding flights in Germany will be charged €8 per domestic segment, €25 for medium-haul flights and €45 for long-range sectors. But there are important exceptions: transfer services will not be charged extra, and cargo flights are not affected at all.

Germany’s air transport industry was caught by surprise when the plans were announced in April. Officials say they are concerned that passenger demand will significantly fall as a result of higher fares leading to the loss of 10,000 jobs.