The airline ticket tax – a business viewpoint
Following the development of a report commissioned by French President Jacques Chirac, a handful of countries have proposed the idea of taxing airline tickets to raise funds for development aid.
ICC remains fundamentally opposed to the creation of a supranational tax for development aid– even in the form of an internationally coordinated national tax – since it fails to meet basic standards of democratic accountability and economic rationality.
An air ticket tax would introduce new competitive distortions between businesses, countries and regions, and would have highly uncertain results for development. ICC urges national governments to reject proposals for a dedicated tax scheme and to work towards poverty reduction efforts based on the proven strategies of democratic accountability, open markets, transparency, rule of law and sound economic policies.