The International Chamber of Commerce (ICC) recently condemned proposals for a tax on airline tickets to raise funds for development aid, saying there are better ways for business and the government to help lift people out of poverty.
Speaking on behalf of business people around the world, ICC Secretary-General Guy Sebban said: "New economic opportunities are needed, not a new tax. Removing barriers to trade, investment and entrepreneurship in an open market should remain the preferred means of achieving long-term development."
A three-page statement elaborating ICC''''s views said that the protection of agriculture in many developed countries increases the need for aid in the developing world and directly counteracts effects of official and other development aid.
"In particular, reducing export support to agriculture in developed countries and improving market access for agricultural imports from the developing world will diminish the need for development aid and free funds that might be used for Official Development Assistance," the statement said.
French President Jacques Chirac, who proposed the air ticket tax, convened a ministerial conference in Paris on February 28 to encourage more countries to implement the proposed tax.
France has announced it will begin levying the tax on July 1, 2006, and is pushing for other countries to follow suit. When the plan is introduced, flight tickets originating in France will be subject to a tax between 1 to 40 euros per passenger depending on the flight class and destination.-PR