France Redistributing Flyers' Wealth to World's Poor
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Airline passengers in France face new tax to help world's poor
Jul 02 6:42 AM US/Eastern
Passengers boarding planes in France are now paying a new tax on their tickets to help the world's poor, after the measure came into effect on the weekend.
The tax, championed by President Jacques Chirac and backed by UN Secretary General Kofi Annan, adds a surcharge of between one and 40 euros (1.25 and 50 dollars) depending on the destination and class of seat.
Money raised is to go to an international fund to buy treatments for AIDS, tuberculosis and malaria.
A number of countries -- Brazil, Chile, Cyprus, Congo, Gabon, Ivory Coast, Jordan, Luxembourg, Madagascar, Mauritius, Nicaragua and Norway -- have all signed on to the initiative, and France hopes others will follow suit.
The United States, Canada and Germany, though, oppose the levy, and several airlines have complained that it will simply add to the cost of air travel at a time of high fuel prices.
The money from the tax on flights from France is expected to generate 200 million euros a year for an International Drug Purchase Facility, also known as Unitaid.
The fund will be used to bulk-buy medicines for countries -- mainly in Africa -- that cannot afford them.
Under the measure, passengers flying out of French airports will pay one euro in economy class, and 10 euros in business, if their destination is in the EU. For flights outside Europe, the surcharges are between four and 40 euros, depending on the class.
Passengers who make a stopover in France of less than 12 hours, or who stay longer because of delays, are exempt.
