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.