French government agrees air tax

Wednesday, 23 November 2005, 16:50 GMT The French government has approved plans for a new tax on airline tickets to boost aid for the world's poor. The tax, which needs parliamentary approval, would range from one to 40 euros depending on the distance travelled and type of ticket. Levied on every passenger boarding a flight in France, it could raise up to 210m euros ($248m; £144m) a year. President Jacques Chirac has been campaigning for an international air tax to help fight global poverty. He first raised the idea during the Word Economic Forum in Switzerland last January, saying an international tax of one euro should be charged on the 3 billion airline tickets issued each year. He has the support of the UK government, which has agreed to divert revenues from its existing Air Passenger Duty. In Chile, a $2 surcharge will be added to tickets on all outgoing flights from January 1 2006. http://news.bbc.co.uk/2/hi/business/4463204.stm