Italy Seeks To Impose Business Jet Tax
Italy’s parliament this week approved plans for a new tax on business aircraft, but details of how the legislation will work in practice are not anticipated until later next month. However, it is expected that tariffs could reach about $385,000 for larger business jets that spend more than 48 consecutive hours in the country. The tax will apply only to privately owned aircraft and will exclude those operated under commercial air operator certificates, as well as aircraft operated by governments and for purposes such as emergency medical services. Fabio Gamba, chief executive of the European Business Aviation Association, has condemned the tax as an ill-considered move that will mainly penalize non-Italian operators while raising little revenue for Italy’s deeply indebted government. The Italian government has estimated that it could raise as much as $50 million per year from the tax, but Gamba told AIN the revenue will be much lower in practice because operators will find ways to circumvent liability or simply avoid keeping their aircraft in Italy for more than 48 hours. For instance, operators visiting northern cities such as Milan could easily reposition their aircraft across the border at Swiss airports such as Ticino. The tax, which will be calculated on a sliding scale according to aircraft weight, will also apply to helicopters.