HSG researching greener approaches for taxation of aviation
St.Gallen - Researchers at the University of St.Gallen (HSG) are working on a project for more effective taxation of the aviation industry from an environmental perspective. The project supported by the Swiss National Science Foundation aims to reduce emissions in the sector.
(CONNECT) Researchers at the University of St.Gallen (HSG) are working on the project entitled “Taxation of the Aviation Industry – A Holistic Approach”. The project funded by the Swiss National Science Foundation with 513,443 Swiss francs aims to develop specific recommendations for the more effective taxation of aviation, as was reported in a press release.
The starting point is the finding that the aviation sector in Switzerland is responsible for a significant share of greenhouse gas emissions, with airlines often benefiting from tax exemptions, particularly on fuel taxation.
According to the press release, as the first study of its kind, it should therefore identify ways in which this situation can be remedied. During the first phase over a 3.5-year period from 2025 to 2028, the constitutional framework will be analyzed. The second part is dedicated to the impact of existing international tax law on the aviation sector, in particular with regard to the OECD Model Tax Convention, which regulates tax allocations in cross-border traffic.
It is hoped the study will contribute practical relevance for legislation and spark a broader discussion about the role of taxation in international climate policy. The project team consists of Peter Hongler and Giedre Lideikyte Huber from the HSG’s Law School. They are supported by Andreas Wittmer from the HSG Center for Aviation and Space Competence, who contributes his expertise as well as industry-specific data and contacts. ce/ww