The European Commission (EC) has published figures revealing that the scrapping of intra-European duty free sales could cost around 30,000 jobs within the aviation sector in Western Europe. At the same time, the EC has refused to grant the tax perk a stay of execution.
An EC report into the planned abolition of duty free goods on 30 June insists the move must go ahead, and in spite of the figures, claims it will "not have a significant negative impact" on jobs.
In an annexe to the document, however, the Commission - which had avoided placing a figure on job losses - reveals that overall, 53,528 redundancies are envisaged in the 11 member states that provided estimates.
Four countries failed to report, and given that three of these - Italy, Greece and Portugal - are top tourist destinations like Spain, which predicts 22,406 job losses, the overall European total could be greater than 80,000.
Losses within the aviation sector seem certain to account for at least a third of this total (Ireland predicts 466 jobs lost in the air sector, out of 1,166), and the proportion could be far higher given that some countries with significant charter traffic have not provided breakdowns.
The pro-duty-free lobby claims abolition could cost up to 140,000 jobs, directly and indirectly, but the EC maintains that it is an unnecessary tax perk, incompatible with the European single market.
The question will now be considered by European finance ministers on 15 March, but seems likely to be passed on to a heads of government meeting in Cologne later that month. Many countries are already in favour of a five-year stay of execution, but such a move would require unanimity - and a change of heart by Denmark, Belgium and the Netherlands.
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Source: Flight International