France Plans to Increase Tax On Air Tickets to Allocate $110 Million for Railway Investments

The French government has chosen to finance the €100 million ($110 million) growth and improvement of its rail industry by raising the tax on airline tickets. This is a new phase in boosting domestic train travel over air travel to accomplish its environmental aims after its recent implementation of banning short-haul flights under 2.5 hours.

Clément Beaune, the transport delegate for France, said that many people are astonished by how much more expensive flying is compared to taking the train. Le Parisien was informed by Mr. Beaune that as those who travel more frequently tended to be less price sensitive, any price rises will be passed on to business travelers and ticket buyers. the priciest aircraft as well as on the tickets that bring in the most money for the carriers.

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According to a Greenpeace analysis from July 2023, French aircraft tickets are much less expensive than train tickets. A train trip cost 2.6 times as much as a flight did on average. These results indicate that if plane ticket prices rise, consumers may become less inclined to fly altogether. The Parisien was informed by Beaune’s company that the price rise only applied to first- or business-class tickets.

They claimed that only visitors will be impacted because they are less sensitive to price hikes. Beaune has consequently proposed increasing the private jet owners’ tax in 2024. With the funds obtained, a €100 million plan to upgrade and expand France’s railways will be partially funded.

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Another analysis released in July 2023 by the advocacy organization Transport & Environment contends that additional airline taxes are long overdue. The investigation found a “tax gap” of up to 34.2 billion Euros due to “unjustified” tax exemptions offered to European Airlines. This figure represents what may have happened if these exemptions had not been granted. The largest portion of the shortfall was made by Air France, which received concessions worth 2.4 billion euros. If no one takes action, the gap will widen by 38% by 2025, according to Transport & Environment.

In light of the proposal, SCARA points to the current “Chirac Tax” on airline tickets, which went into effect in 2005 and will be increased in 2020. They assert that the tax brought in €250 million between 2020 and 22. “Le transport aérien a déjà donné” — the aviation industry has contributed enough — is what they say. In addition, SCARA asserts that Paris will become carbon neutral for air travel as early as 2024.

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