Brussels tables EU air tax proposals

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By Henrietta Billings
- 30th August 2005

Brussels is set to unveil new policy proposals for a voluntary EU airline ticket tax designed to boost development aid.

Laszlo Kovacs the EU's taxation chief will present a communication to colleagues at the European Commission's weekly meeting on Thursday.

The "technical reflections" published ahead of the UN General Assembly in September are expected to focus on two options identified by national governments as possible ways to raise new sources for development aid.

These include the voluntary participation by member states in an international scheme with a mandatory tax for passengers at national level, and voluntary participation in a scheme with a voluntary contribution by passengers.

The paper, seen by EUpolitix.com, focuses on "technical aspects of the two options...and on the nature of the revenues raised by the levy or the voluntary contribution."

French President Jacques Chirac announced earlier this week plans to introduce a "solidarity" airline ticket tax from next year.

France estimates the national levy could raise up to €8.2 billion a year for campaigns against Aids, tuberculosis and malaria in Africa.

The Kovacs paper will be discussed at the informal meeting of EU finance ministers on September 9-10 in Manchester.

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