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EU Debates Tax on Airline Tickets to Fund Development Aid
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(http://enews.voanews.com/t?ctl=D77A09:3919ACA

Some EU nations question merits of plan at a time when airlines are
already suffering economically





The European Union is debating a tax on airline tickets to help pay
for additional development aid for poor countries. Some EU nations
question the merits of the plan at a time when airlines are already
suffering economically.

European officials say a number of proposals are being circulated.
Under one, a tax on tickets would be voluntary for member nations,
airlines and travelers. People buying a ticket would be asked if they
want to contribute a small amount to development aid. Officials gave
no specific amount for the tax.







Brian CowenThe idea is part of efforts to achieve a United Nations
target of raising development aid to seven-tenths of one-per cent of
gross national income over the next 10 years. Irish Finance Minister
Brian Cowen, says it is more of a humanitarian issue than a tax
matter.

"I don't think what you're going to see is an EU-wide mandatory tax
proposal," Mr. Cowen said. "I think what colleagues are trying to
achieve is to bring forward some ideas, some proposals that would
allow people in Europe, and indeed elsewhere, to continue to
demonstrate their solidarity with the developing world. We've seen the
reaction of civil society to the Tsunami. I think its a question of
how does one capitalize on that surge of solidarity that people feel a
tragedy that has happened."

But Austrian Finance Minister Karl-Heinz Grasser said his country will
not take part. He argued that EU ministers are not united on an
airline ticket tax, or a possible tax on jet fuel, which also came up.
He said this would be just another tax on already overburdened
consumers.

The EU's executive Commission will make its own proposal on the matter
by early June, in time for consideration by another meeting of the
finance ministers.


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