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13 countries to adopt an air ticket tax to help the poor

Date: 2006-03-06

Thirteen countries forged an alliance to adopt a levy on plane tickets to help poor countries fight AIDS and other killer diseases. The countries are Brazil, Britain, Chile, Congo, Cyprus, France, Ivory Coast, Jordan, Luxembourg, Madagascar, Mauritius, Nicaragua and Norway. A further 25 countries opted not to impose the tax but promised to contribute to a central pot which the core group of 13 will create from the levy to fund the purchase of generic drugs and other medicines to help the poor. Among these countries are Germany, Belgium, Austria, South Africa, South Korea and Mexico. The USA, Italy and Greece as well as the International Air Transport Association (IATA) strongly oppose the idea, being concerned about high fuel costs.

From July 1, a French law will levy one euro on domestic and European flights and 4 euros on long-haul flights. Business and first class travelers will be charged an extra 10 euros, rising to 40 euros on international flights. France expects to raise 200 million euros ($239 million) in a full year from the levy. Other countries will decide individually what charges to apply.



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