Holland proposes a new aviation tax The Dutch government is planning a new aviation tax on passenger and cargo flights departing from Dutch airports. Passenger flights will pay 7 euros ($8) per passenger, and cargo flights will pay 3.85 euros ($4.30) per ton. Assuming that the supply of airport services is inelastic and demand is elastic, what can we say about the incidence of the Dutch tax on aviation? On the basis of what principle would this tax be fair?