The contribution of commercial airlines will become an environmental tax

From 2023, the tax on airlines will depend on emissions, and airlines will have to fulfil a new administrative task. 

The provision introduced as an extra-profit tax as of 1 July 2022 determined the amount of tax to be paid depending on the passenger’s final destination.

Government Decree 452/2022 (XI. 9.) amends the regulation as of 1 January 2023 in a way that, in addition to the passenger’s final destination, the tax rate will be determined as the product of the carbon dioxide emission value of the aircraft according to the ACI Airport Carbon and Emissions Reporting Tool and the number of engines for one seat.

Based on the new regulations, if the passenger’s final destination is located in the territory of the European Union, Albania, Andorra, Bosnia and Herzegovina, North Macedonia, Iceland, Kosovo, Liechtenstein, Moldova, Monaco, Montenegro, the United Kingdom, Norway, San Marino, Switzerland, Serbia or Ukraine, the tax rate will be:

• HUF 2,700 per passenger for aircraft with an emission value of less than 10.50 kilograms per seat 
• HUF 3,900 per passenger for aircraft with an emission value of 10.50 kilograms or more, but less than 17.50 kilograms per seat, 
• HUF 5,100 per passenger for aircraft with an emission value of 17.50 kilograms or more per seat

For all other countries the tax rate will be: 

• HUF 6,800 per passenger for aircraft with an emission value of less than 10.50 kilograms per seat
• HUF 9,750 per passenger for aircraft with an emission value of 10.50 kilograms or more, but less than 17.50 kilograms per seat
• HUF 12,700 per passenger for aircraft with an emission value of 17.50 kilograms or more per seat. 

Airlines must provide data to the ground handling service provider in a separate and identifiable manner regarding the per-seat value of the product of the carbon dioxide emission value according to the ACI Airport Carbon and Emissions Reporting Tool and the number of engines for all of their affected aircraft operated in that month, by the 5th day of the month following the month in question. If the airline fails to fulfil this obligation, the tax must be determined at the highest rate depending on the passenger’s final destination. 

Airlines may have to consider whether they can easily retrieve the necessary data from their systems or whether it is possible to automate the process.

For ground handling service providers, it is an important question whether they can validate the data they will receive from the airlines, and whether they can reach an agreement with the airlines concerning responsibility for the correctness and completeness of the data.

László Deák 
Partner 
Email: laszlo.deak@pwc.com

Gábor Farkas 
Partner 
Email: gabor.farkas@pwc.com

Barbara Koncz 
Partner 
Email: barbara.koncz@pwc.com

Balázs Szük 
Senior Manager 
Email: balazs.szuk@pwc.com