The Norwegian Government has to day passed a formal proposal on air traffic taxes to the Storting (National Assembly). The CO2- and sulphur emission tax on air fuel in international air traffic is to be removed from 1 January 1999. The revenue loss from this tax removal - estimated to NOK 75 million - is to be compensated by an increase in the tax on air passenger seats.

An emission tax on air fuel for both domestic and international flights was introduced in Norway from 1 January 1999. However, uncertainty has arised if these taxes are in line with bilateral air-transport agreements on international flights between Norway and several other states. The Norwegian Government therefore proposes to remove the emission tax on international flights, as from 1 January 1999. Subject to approval of the Storting, this means that the actual payments of these taxes since their introduction will be refunded with interest. The emission tax on fuel for domestic flights will remain in force.

The annual revenue loss from this removal of the emission tax on international flights needs to be compensated. The Government therefore proposes an increase of the tax on air passenger seats from 1 May 1999. The rate on domestic flights is proposed increased with NOK 7,50 to NOK 62, and the rate on flights abroad with NOK 15 to NOK 124.

The Government proposal is delivered in a parliamentary document - St prp nr 53 (1998-99).