TaxPersonal TaxFrance launches airline ticket tax

France launches airline ticket tax

Chirac hoping for support from other countries

From 1 July, airline passengers flying out of France will be charged an
airline ticket tax ranging from 1 euro (78p) for economy tickets within Europe
to as much as 40 euros (£27.20) for first-class transcontinental flights.

The money will be used to fund medical aid and the French government is
hoping to raise as much as 200m euros (£136m) from the new tariff.

At the same time French president Jacques Chirac is expecting support from as
many as 10 countries for international tax on airline tickets during a
development conference that opens in Paris this week.

The plan is opposed by airlines and some countries that are dependent on
tourism.

The UK has given symbolic rather substantiative support to the French plans
by relabelling part of the revenue from an existing air travel tax as dedicated
to development aid, while Germany has said it is undecided on whether to pledge
to introduce a ticket tax, the FT reported.

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