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Germany plans to cut air traffic tax, draft shows

BERLIN, March 17 (Reuters) - Germany's government plans to reduce air traffic duty from July, taking it back down to May 2024 levels in a boost to the aviation sector, a draft document seen by Reuters showed on Tuesday.

International airlines had long complained that flying to and from German airports was too expensive and threatened to reduce their presence here.

Government of Chancellor Friedrich Merz's conservatives and Social Democrats is fulfilling coalition deal commitment. Details had been disputed

Previous government had raised the tax in 2024 as it sought to fill a budget gap

Duty is part of costs paid by airlines at German airports, along with airport charges and fees

Aviation industry had warned the tax meant Germany would fall behind other countries as an air hub

Total cost to federal government will be around 1.5 billion euros by 2030

Draft shows the reduction will be between 2.50 euros  ($2.88) to 11.40 euros per passenger, depending on the distance

For passengers to feel benefit, airlines will have to pass on reductions

($1 = 0.8668 euros)

 (Reporting by Klaus Lauer
Writing by Madeline Chambers
Editing by Ludwig Burger)

 ((Madeline.Chambers@thomsonreuters.com; +4930220133578;))

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