France to Start Solidarity Tax on Airline Tickets Next Year

BTB

The measure to levy tax of solidarity on air tickets was adopted on Monday by France’s upper house of the parliament, the Senate, paving the way for a July 1, 2006 launch.

The tax is to apply to air travelers originating from France.  The amount of the tax will depend on the distance traveled, ranging from US$1.2 to US$47, and type of ticket.  An economy-class flight passenger within Europe from a French airport would pay up to 1 euro and 4 euro for flights beyond Europe.  Business and first-class travelers can expect to pay “multiplied by 10,” a source told AFX.

The French government is hoping to generate US$236 million a year for health programs aimed at helping the world’s poorest countries with African countries getting the bulk of the funds collected.  The fight against HIV/AIDS is reported to be among the top priorities.

The French parliament is comprised of the lower house, the National Assembly, and the upper house, the Senate.  The lower house had already passed the bill.

A source told Forbes AFX that “more than 70 countries” supported the idea behind the bill and that an international conference would be held in February “with all the countries that back a contribution, whether it be voluntary or compulsory.”   Brazil, Chile and the United Kingdom, however, are the only countries that have expressed their support for the measure so far.