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Impact analysis tax burden reduction


Publication number: 2016-51
Authors: G. Burghouwt, J. Zuidberg & T. Boonekamp
Commissioned by: B.A.R.I.N. and KLM
Published by: SEO Amsterdam Economics
ISBN: 978-90-6733-821-9

This study estimates the effects of a tax burden reduction for airlines at Dutch airports. Model calculations show that a burden deduction of € 100 million (approximately € 4 per ticket) will lead to 1.7 - 2.7 million additional passengers at Schiphol Airport and several hundred thousand extra passengers at regional airports in comparison with the current situation. The turnover will rise by € 540 to € 591 million for airlines and by approximately € 30 million for airports, whereas additional foreign visitors will bring in € 123 to € 133 million in revenues. Gross employment effects (in the short term) are estimated at 4,300 to 4,600 jobs whereas the estimated added value is € 340 to € 365 million. In the first year after the introduction of the tax burden reduction the net welfare gains will be € -8 to € 31 million. If a tax burden reduction prevents erosion of the network, the welfare gains will be € 116 to € 188 million.


Category: 2016, Joost Zuidberg, Thijs Boonekamp, SEO Aviation Economics