Sweden wants new tax on airline tickets

Sweden's government said Wednesday it plans to propose a controversial tax on airline tickets to compensate for the lack of VAT on international flights and the low price airlines pay for greenhouse gas emissions.

The tax would range between 80 and 430 kronor (between 8.40 and 45 euros, or $8.8 and $48) per ticket depending on the length of the flight, deputy finance minister Per Bolund told reporters.

The proposal would be included in the 2018 budget bill, and the tax would take effect on January 1, 2018.

"It's an example of green tax reforms," Bolund, a member of the Green Party, said.

The centre-right opposition is fiercely opposed to the move. It fears airlines could move their routes to neighbouring countries, and companies with head offices in Sweden could move abroad.

But Bolund said the minority left-wing government expected parliament to pass the proposal, as it was "highly unlikely" the minority centre-right opposition would collaborate with the far-right to vote down the budget bill.