Saturday, October 5, 2024 - 8:54 am
HomeEntertainment Newsthe government wants to impose heavy taxes on airline tickets

the government wants to impose heavy taxes on airline tickets

Looking for ideas to save 60 billion euros in its next budget, Prime Minister Michel Barnier’s government aims to put air transport to work. The new Minister of Transport, François Durovray, confirmed on Tuesday 1Ahem In October, the general director of Air France-KLM, Ben Smith, as well as representatives of the National Federation of Aviation and its Trades (FNAM) – the professional organization of airline companies – that would increase the taxation that weighs on the French air transport. significantly.

Read also | Article reserved for our subscribers. Budget: Government promises 40 billion savings from 2025

The government wants to recover “Billion euros of additional taxes” per year, explains Pascal de Izaguirre, president of the FNAM, and this with the unprecedented increase in the solidarity tax on plane tickets. A tax known as the “Chirac tax”, introduced in 2006, whose main objective is to finance the fight against AIDS in Africa. Today, tax revenue amounts to 460 million euros. According The EchoesThe government intends to make all passengers contribute up to one billion euros. Starting with the wealthiest, who take long-distance flights in business class on flights of more than 5,000 kilometers. For these passengers, the solidarity tax on plane tickets should be tripled, from around sixty euros to 200 euros.

The tax burden will be proportionally even higher in the economy class. For the same long-haul flight, the rate will be multiplied by eight, going from 7.50 euros to 60 euros. Finally, business aviation would see the tax increase to 3,000 euros per passenger on long-haul flights.

“A strengthening of competitiveness gaps”

On the airline side, this explosion of increases is not going well. Air France, which is the only one that already complies “30% of tax revenue”or 140 million euros a year, complaint “a doubling of the burden”. “Air transport is in a state of shock while the sector is already weakened and convalescing after the pandemic”the lord of Izaguirre laments.

The president of the FNAM reminds the Government that taxes on domestic flights are already rising “40% of the ticket price”. He believes that these new taxes will accentuate the fall “of the French flag, which has been in decline for twenty years and which loses 1% of market share every year”. According to him, today it would only have a market share of 37.5%, compared to 62.5% for foreign companies. Air France and FNAM fear “a strengthening of competitiveness gaps”to the detriment of French operators.

You have 11.42% of this article left to read. The rest is reserved for subscribers.

Source

Anthony Robbins
Anthony Robbins
Anthony Robbins is a tech-savvy blogger and digital influencer known for breaking down complex technology trends and innovations into accessible insights.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Recent Posts