EU might ask Jet Airways to pay Rs 300 crore carbon tax

EU might ask Jet Airways to pay Rs 300 crore carbon tax European Union officials might ask the Indian private sector carrier, Jet Airways to pay Rs 300 crore toward carbon emission tax for its operations on the continent.

Even as the European authorities have asked aviation firms to file their carbon emission data in order to calculate carbon taxes on them, the government in India has urged the airlines not to comply. India is opposing the move by the European authorities and have received support from more than two dozen countries including the US and China.

The carbon emission tax is an environmental tax imposed on the carbon content of fuels and airlines might have to pay between $100 and $150 on each ton of carbon put into the atmosphere while flying over the continent.

The carriers ferried a total of 2.5 billion passengers and emitted 650 million tons globally last year. The Indian government has stood on it stance and has asked country's airlines to refrain from submitting carbon emissions data to the European Union (EU) for a new tax.

The European Union officials are planning to implement the tax from 1 January for flights to Europe. Air India, Jet Airways and Kingfisher Airlines are the Indian airlines that fly to Europe. The proposed Emission Trading Scheme
(ETS) will impose a fee for carbon emissions that exceed a prescribed limit.

The civil aviation ministry said in a letter to all the Indian aviation firms that fly to Europe that the government has decided that there is no need for the India aviation firms to submit any data to European Union under EU-ETS.