In the United States the Airport and Airway Trust Fund are providing funds for capital improvements to the US airport and airway system. In order to fund the aviation trust fund taxes have been imposed on both commercial and non-commercial aviation. Below we are going to look at air freight services tax and what exactly it is with reference to the United States.
There are two types of taxes that are imposed on the air freight services: waybill tax imposed on freight transportation and fuel taxes on gasoline and jet fuel for air freight services (non commercial aviation) In the United States air freight services tax is charged on all domestic air cargo transportation at 6.25% ad valorem excise tax and this tax only applies to transportation that begins and ends in the United States. But unlike air passenger taxes the shippers are the ones liable for the air freight services tax payment and so transportation providers are subject to penalties if they fail to make reasonable efforts to collect the tax that has been imposed. In the United States there is no disclosure requirement with regard to air freight tax and this tax expires after September 30 2007.
Fuel tax wher air freight services are concerned (non-commercial aviation) they are only subject to a fuel tax and the rates for both gasoline and jet fuel are shown below.
Non-commercial aviation is taxed at 19.4cents per gallon of aviation gasoline while non-commercial aviation is taxed at 21.9cents per gallon on jet fuel.
Air freight services companies also need to factor in an additional 0.1 cent leaking underground storage tank trust fund tax as well.
As a conclusion, it is advisable when looking at using an air freight company in the future you read the small print of their contract in order to know exactly what you are paying for.