October 8, 2018 / 9:01 AM / 6 months ago

Norway proposes increased tax on long haul flights, cut on short haul

OSLO, Oct 8 (Reuters) - The Norwegian government proposed on Monday to raise the tax on airline tickets to non-European destinations to 200 Norwegian crowns ($24.13) from 80 crowns currently.

On travel in Europe, it proposed a cut to 75 crowns per ticket from 80 crowns.

“The passenger fee is given an environmental profile by introducing distance differentiation with higher rate from EEA/Europe,” the government said in its 2019 fiscal budget proposal.

Overall, the overall proceeds from airline ticket fees is expected to be neutral, it added.

If approved by the parliament the changes will take place from April 1.

Norwegian Air and SAS have the largest market shares in Norway. ($1 = 8.2874 Norwegian crowns) (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)

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