As we reported back in 2005, French President Jacques Chirac campaigned hard for an international tax on airline tickets to help fight global poverty. Now the French government has approved the levy which will range from EUR1 to EUR40 (USD$1.18 to USD$47.20) on flights from France, depending on distance travelled and the class of ticket.

The levy will takes effect from 1st July. The French government hopes that in France alone, the tax will generate EUR210 million (USD$248 million) a year. UN Secretary-General Kofi Annan has urged other governments to follow France's lead though the plan has encountered resistance in the United States – not surprising when the US will not sign up to the Kyoto Protocol.

The plan has also failed to win widespread backing in Europe and upset airlines, which fear higher fares will drive away passengers. It has, however, been adopted by Chile and the Chilean President Ricardo Lagos said in September last year the measure had been approved in his country and would go into effect on January 1, when a USD$2 charge would be added to tickets on all outgoing flights from Chile.