Flights departing Israel could become more expensive under a new proposal by the Israel Tax Authority to impose a tax on aircraft taking off from the country. The proposed tax, outlined in a position paper ahead of discussions on the next state budget, would be calculated according to two factors: the aircraft's weight and the distance it travels.
According to the Tax Authority's estimates, if airlines pass the additional costs on to passengers, tickets to European destinations could become approximately 58 shekels more expensive on average. Long-haul flights, including routes to the United States and East Asia, could see an average increase of around 274 shekels per passenger.
Domestic flights could also become more expensive, with an estimated additional cost of approximately 12 shekels per passenger. The Tax Authority estimates that the proposed tax could generate approximately 1.1 billion shekels in annual revenue for the state.
The authority expects airlines to pass on at least part of the additional expense to passengers through higher ticket prices.
However, the proposal remains a recommendation and has not yet been approved as part of the state budget. No changes to flight taxation or ticket prices have therefore taken effect as a result of the proposal.