566

They say nothing is certain but death and taxes.

(Fun Fact! Although the saying is usually credited to Benjamin Franklin (in his last letter to a French scientist in 1789), it was actually used in 2 separate publications, written by Daniel Defoe and Christopher Bullock, respectively, in the 1700s.)

Regardless, taxes are certainly a fact of life. They almost always go up, as well. Right now, the French government is considering a proposed budget plan that would call for considerable increases in airline passenger taxes.

The current tax

France currently charges a solidarity tax (TSBA) for each passenger who flies over 5,000 kilometers (that includes flights from the U.S.). This tax was introduced by then-president Jacques Chirac in 2006, and it’s one of 10 taxes levied on air travel to France (the total of all 10 taxes makes up about 40% of a ticket price).

The tax has risen over the years. In 2006, it was €4 for economy and €40 for business or first class. However, the current cost for the TSBA is roughly $8.32 (7.51 euros) per passenger for economy and $69.05 (63.07 euros) for business class.

The tax they’re considering

Unfortunately, France has a huge public debt, so it’s trying to raise 60 billion euros to reduce the fiscal benefit to 5% in 2025. And what do governments do when they need to pay off bills? They increase taxes, of course.

If the new rule passes, the new tax for each passenger who flies over 5,000 kilometers would cost $65.69 (60 euros) for economy class and (are you sitting down?) $218.99 (200 euros) for business class.

That’s a $57.37 increase, per person, for economy, and $155.92 for business class.

A slight increase would be reasonable. But they’re not being reasonable.

And outrage ensued

Airlines publicly balked at the potential increase.

“The airlines are not in a position to absorb such a tax shock so we are going to have to pass this on in ticket prices,” said Pascal de Izaguirre, CEO of Corsair.

Air France CEO Anne Rigail agreed, suggesting the new tax amounts would be a “real shock to the sector.”

Meanwhile, Willie Walsh, director general of the International Air Transport Association, warned that if the increases are approved, “it will be a disaster for France. You cannot tax yourself to prosperity. Aviation is a driver of employment and prosperity, as well as a proven accelerator of growth in other parts of the economy.”

Is this 100% going to happen?

No. Well, maybe. On October 10th, the French government proposed and officially announced it as part of the 2025 budget. Unfortunately, it passed. That means it will next be debated in the National Assembly and Senate, and both will need to approve it.

Watch this space, I guess.

Want to comment on this post? Great! Read this first to help ensure it gets approved.

Want to sponsor a post, write something for Your Mileage May Vary, or put ads on our site? Click here for more info.

Like this post? Please share it! We have plenty more just like it and would love it if you decided to hang around and sign up to get emailed notifications of when we post.

Whether you’ve read our articles before or this is the first time you’re stopping by, we’re really glad you’re here and hope you come back to visit again!

This post first appeared on Your Mileage May Vary