New airline tax proposed to fight global poverty
With global leaders and the United Nations pushing for funding fight against poverty, one group of countries says an airline tax will help.
France, Brazil, Chile and Germany called for a new tax on airline tickets to help finance the global fight against poverty, and urged other countries to support the proposal at a UN ministerial meeting.
The call came in advance of the meeting of G8 nations at Gleneagles, Scotland next week, a mass march on Edinburgh and 10 Live8 concerts worldwide tomorrow aimed at raising awareness of the issue of poverty.
In the search for new ways of funding the UN goal of halving extreme poverty by 2015, France led the proposed new airline tax call.
France’s minister of economy and finance Thierry Breton said: “Airline tickets were chosen because airlines benefit from globalization and pay low tax rates, because airline passengers ‘are rarely among the poorest citizens’ and because the practical and legal feasibility of similar levels has been proven in Britain and elsewhere,” reported the Associated Press.
The tax is proposed to be different for domestic and international travel and for economy and business seats, and it could also vary depending on a country’s wealth.
The example given, if all countries participated, is a tax of 5 euros (US$6.08) per passenger, with a 20 euro (US$24.32) surcharge for business class, which would generate about 10 billion euros (US$12.16 billion) a year.
Meanwhile, UK Chancellor Gordon Brown is reportedly drawing up plans to siphon off millions of pounds raised through Air Passenger Duty to fund an aid package for Africa.
According to The Times today, part of the £900 million a year raised through APD will be ring-fenced to hlp end poverty in Africa. Treasury officials were quoted as saying APD will not be raised to finance the deal.
Charles Kao
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