Aviation fuel used for domestic travel is taxed in the U.S. and some other countries, but fuel used for international travel is not. The exemption dates from a 1944 treaty provision, then intended to foster growth in a developing industry promising to help build stronger international ties.
In the U.S., fuel taxes are higher for private aircraft than for commercial airlines. In addition to federal excise taxes, states also apply taxes at rates ranging up to more than 30 cents a gallon. Federal law requires all proceeds to fund the aviation system.
Japan, Canada, India and Brazil are among other countries taxing domestic aviation fuel.