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Airlines reinstate collection of federal excise tax for air cargo

January 8, 2021

Airlines operating in the U.S. are once again collecting the federal excise tax on freight shipments that were suspended for most of last year to help the industry survive the economic fallout from the coronavirus pandemic.

The $2.2 trillion economic stimulus package known as the CARES Act provided an aviation tax holiday from March 28 through the end of 2020. Airlines were not required to charge the 6.25% tax on goods shipped by air or the 7.25% tax on passenger tickets, as well as other passenger fees, as a way to help attract customers. During that period, the government also did not impose excise taxes on jet fuel.

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