The impact of carbon tax on fares of allIndian flights to and from Europe would be "quite significant" if it is imposed by the EU, official sources said today.
The EU-ETS, which came into effect this January, also makes it mandatory for all airlines to submit emission data to the European authorities to enable calculation of the carbon tax that should be paid. However, no Indian carrier is abiding by it due to the opposition of the government here.
"The likely impact on air fare is expected to be quite significant as all airlines will be forced to pass on the burden to the passengers. However, no Indian carrier is submitting the trial data (on emission) in view of the government's stand to oppose the scheme," a source said.
Global airlines body IATA, at its Beijing AGM in June, had warned of a trade war between Europe and nations opposed to EU-ETS over imposition of carbon tax on all air travel.