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News 14/06/2005   

G8 suggests airline tax to help the poor
 
The G8 Summit agreed over the weekend to look at using airline traffic income to boost aid to poor African countries.

The idea was proposed by the European Union, the eighth member of the G8, last month, which resulted in heavy protesting from struggling European airlines. The current proposal is led by Germany and France, as was the EU scheme.

While airline groups were quick to condemn the plans unveiled over the weekend, which suggested a tax on airline tickets to fund extra money to poorer nations, all G8 finance ministers have consented to the idea.

The tax is said to accumulate to only USD1 or so per ticket, but experts believe it would be a major blow to low-cost airlines in Europe, where they are not required to include tax and surcharges in their advertised price.

Environmental groups, however, cheered and said it was a first step towards making people pay the true cost of plane travel.

G8 has agreed to wipe out $52 billion of Third World debt.

14 June 2005


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