Air Passenger Duty of £13 on short-haul flights to and from Northern Ireland should be abolished, according to MPs.
The Northern Ireland Affairs Committee said APD on flights was a major stumbling block to rebuilding the economy in the province.
Such flights make up 98% of all air travel to and from Northern Ireland.
The committee wants the Northern Ireland Executive and the Treasury to look at ways of either reducing or abolishing APD altogether.
Committee chairman Laurence Robertson MP said: “For the people of Northern Ireland air travel is not a luxury, it is fundamental to family and economic life.
“To help rebalance the Northern Ireland economy, it is vital that air links to Great Britain, mainland Europe and the rest of the world are robust.
“That means making sure key routes and landing slots are protected, and that people who have no real alternatives to flying, for business or their family life, are not unfairly penalised by the taxes imposed on air travel.”
APD on long-haul flights out of Northern Ireland was cut earlier this month.