Aviation has a unique fiscal regime. On the one hand, in many countries it is subject to specific taxes and charges, such as a departure tax or a solidarity levy. On the other hand, aviation fuel is generally exempt from excise duty and many countries exempt tickets from VAT or apply a zero VAT rate in case of international aviation. Moreover, the Chicago Convention does not allow for taxation of fuel that is on board of aircraft when they land in a jurisdiction, and other ICAO documents urge States to refrain from taxing international aviation. EU regulation of taxes requires a unanimous... decision of the Council. This study has made an inventory of taxes in the EU and selected non-EU countries. It has also estimated economic and environmental impacts of these taxes and of tax exemptions. In EU Member States, VAT or other taxes on domestic aviation are the most prevalent and exist in 17 Member States. Six Member States levy taxes on international aviation, invariably in the form of ticket taxes for passengers departing from airports in the Member State. The highest average tax rates are in the UK followed by Italy, Norway, Germany and France.