Briefing

T&E Position Paper on Aviation Ticket Taxes

February 1, 2006

This position paper has been published in response to enquiries from stakeholders and the media about the potential for environmental benefits resulting from the French government’s proposed “airline-ticket solidarity tax” which will be introduced in July 2006 to raise development funds.

T&E is strongly in favour of taxes on aviation tickets, such a tax can contribute to the objectives of sustainable development. The benefits can be described under three headings:

  • Environmental: it lowers the environmental impact of aviation by slowing down the growth of demand for air travel;
  • Economic: it contributes to a fairer tax system particularly because international aviation tickets are currently exempt from value added tax (VAT).
  • Social: the tax will be used for development purposes and will be paid by the richest segment of society – those that fly.

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