Finns support introduction of flight tax to collect money for development aid

Nearly all young people would be willing to contribute a few euros, according to survey

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Finns are willing to pay a couple of additional euros for their air tickets to support the developing countries.
      No less than 87 per cent of the Finns support the idea of a EUR 1-4 air ticket levy, if the profit is used to alleviate poverty in the developing countries. This was among the findings of a survey commissioned by KEPA, the Service Centre for Development Cooperation, and conducted recently by Taloustutkimus.
     
The most eager air ticket tax payers would be the among the younger generation. Of the 15 to 24-year-old respondents, 93 per cent were in favour of adding the tax to the price of a plane ticket.
      A similar system was introduced in France in 2006. According to KEPA, 24 countries have so far signed up to the idea. In 2007, USD 320 million were collected through the tax to finance developing countries’ medicinal acquisitions.
      According to KEPA’s calculations in Finland such a tax would generate at least EUR 16 million per year.
     
The air ticket tax is one of the new forms of development aid financing that are desperately needed to accompany the traditional methods.
      According to Matti Ylönen of KEPA, air travel would be a suitable target for a development aid tax, among other things, because flying is practiced by the wealthy and it burdens the poorer countries through climate change.
      According to Ylönen, a couple of euros is such a tiny sum that it would be easy for the Finns to introduce and get used to such a charge.
     
Traditionally development aid funds have been raised through direct taxation and the monies have been disbursed in accordance with a parliamentary decision.
      According to the Ministry for Foreign Affairs' Head of Unit for Development Financing Institutions Pekka Hukka, such a charge would be a good idea, so long as it does not lead to reductions in the planned growth of the official development aid.
     
Finnair does not support the idea. Director of International Affairs Kari Koli wonders why air tickets in particular should be targeted. “Why not cigarettes, alcohol, or perfumes?” Koli asks.
      Koli points out that for 12 years Finnair has collected money for the world’s children in cooperation with UNICEF.
      France introduced the so-called “international solidarity fee” in its plane ticket prices in 2006.
      The so-called flight tax is in the economy class one euro per passenger when flying to European destinations and four euros on intercontinental flights.
      The proceeds are used under the supervision of the United Nations to purchase medicines for the poorest people in the developing countries.
      The aim is to alleviate the world’s AIDS, malaria, and tuberculosis situation.


Links:
  KEPA

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