A long-haul flight consumes tens of tons of kerosene, a fuel whose pump price remains largely exempt from tax in France. This exemption, inherited from a fiscal framework dating back to the early days of modern air transport, today faces the demands of an ambitious climate transition. Why isn't aviation kerosene taxed, when road fuels are? The answer lies at the intersection of fiscal policy, international competitiveness, and France's climate commitments.
Exemption details: historical context, legal framework, and current scope
Since the 1970s, French legislation has granted an exemption from VAT and domestic consumption tax on kerosene intended for international flights. The aim was to support the development of air transport, seen as a key driver of economic growth and tourism. This measure was reinforced by European agreements that harmonize rules on aviation fuel taxation to avoid tax competition between member states. In practice, kerosene used for flights beyond the borders of the European Union is not subject to any direct taxation, while the same product sold for domestic aviation is subject to a reduced tax, still far lower than that applied to road fuels.
The current legal framework is based on the General Tax Code and European directives on energy product taxation. No major bill has been presented to the French Parliament to challenge this exemption, although several research institute and think-tank reports highlight the growing gap between fiscal policies and carbon neutrality objectives. Thus, the exemption persists, not because it is deemed indispensable, but because it rests on a historical consensus difficult to overturn without European coordination.