Sweden has announced plans to abolish the air travel tax starting in July next year, a move aimed at supporting local businesses but one that has sparked significant controversy.
Critics warn that this decision could lead to increased carbon emissions in a country that once coined the term "flygskam" or "flight shame," referring to the environmental impact of air travel.
The government unveiled the plan during a press conference on Tuesday as part of its budget proposal for the upcoming fiscal year.
The budget also includes additional spending allocations for infrastructure upgrades, research, innovation, and tax relief for foreign experts working in Sweden.
According to Bloomberg News, the Swedish government has faced mounting criticism for rolling back climate policies after previous spending plans contributed to a rise in emissions.
Critics argue that the cabinet lacks a credible strategy to meet its ambitious climate goals, suggesting that Sweden, once seen as a leader in environmental issues, is now losing that status.
In response to the announcement, shares of Norwegian Air Shuttle surged by 6.4% on the Oslo Stock Exchange, marking the airline's biggest single-day gain since July.
Sweden has imposed a tax of 76 kronor (about $7) on each passenger for domestic and intra-European Union flights since 2018. Swedish Energy and Business Minister Ebba Busch acknowledged that removing the tax is expected to result in a short-term increase in carbon emissions.
However, she emphasized that the move is part of a broader strategy to align Sweden's climate policies with those of the European Union.
Follow the latest news on Google News
