Italy Seeks To Impose Business Jet Tax

 - January 5, 2012, 3:30 PM

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.


I can not believe Italy is so depraved as to start imposing such heavy taxes on General Aviation Aircraft visiting their country if they stay just over 48 hours. I can understand that they levy a luxury tax on the based aircraft but making me pay 4750 € for an extended 49 hour business visit to Italy is mind bogglingly stupid. Why not stimulate people coming to this wonderful country for business and leisure and give them a - let's say - 15 day exemption. The way it is conceived now will be totally counter productive - they are blinded by wishfull thinking - what they will generate is less income, not more. So that is one more destination I can scrap - so far for the 5 star Hotels and good restaurants I took pleasure in patronizing.

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