India, EU to resolve differences over move to tax air travel

NEW DELHI: India and the European Union on Friday stuck to their respective stands on EU's move to tax air travel by including aviation in their Emissions Trading System (ETS), but decided to resolve the differences urgently.

India, along with over 30 countries like Russia, the US and China would meet in Moscow later this month to decide whether to take retaliatory measures against the EU's "unilateral" decision to impose this carbon tax.

A joint statement, issued at the 12th India-EU summit here, said leaders of both sides "reiterated their respective positions on the inclusion of aviation in the EU ETS and noted the strong divergence of views. Both sides agreed on the need to urgently resolve the issue."

On the brighter side, the two sides sought "appropriate steps to enable the entry into force of the Horizontal Civil Aviation Agreement," the statement said.

The carbon tax has been imposed from January one on all flights by non-EU carriers to and from an airport in the EU territory or over-flying the European airspace, making air travel costlier.

Over 30 major countries, including India, adopted the 'Delhi Declaration' last September to oppose the tax terming the move as being "inconsistent with the international legal regimes".

Official sources said these and other countries, affected by this move, would meet in Moscow on February 21-22 to take a decision on what retaliatory measures could be taken against EU if it insists on imposing the carbon tax on non-EU flights.

"Even if only India, Russia and China decide to start reciprocally charging for over-flights by European carriers or restrict the number of flights being operated by them citing emission concerns, it could have a devastating effect on the European airline industry," an official said.