Flight taxes to increase in France.
In a bid to bolster their rail sector, France Government has decided to raise flight taxes on first and business-class air tickets and allocate it towards rail investment. The forthcoming 2024 finance bill will incorporate this tax increment, with an estimated yield of €100 million by 2027.
This initiative is part of France’s overarching strategy to prioritize train travel over air travel as a means to safeguard the environment. Earlier this year, France enacted a prohibition on domestic flights under 2.5 hours that can be substituted with train journeys. Furthermore, the government has set its sights on reducing greenhouse gas emissions in the transport sector by 40% before 2030.
The surge in taxes will specifically apply to flights originating from France, excluding connecting flights. The precise amount of taxation will hinge upon the distance of the flight and the class of the ticket, manifesting as a range spanning from €10 ($11) to €400 ($440) per ticket.
Clément Beaune, the French transport minister, explained that this tax hike primarily targets passengers who exhibit less sensitivity to changes in prices, particularly those who prefer first and business class. Beaune further expounded that the revenue collected from these taxes will be utilized to enhance the railway network, particularly in rural areas, and propel the advancement of high-speed trains.
The proposed tax hike has sparked a heated debate, with opponents including airline companies and the industry lobbyists voicing their concerns. They argue that the tax increase will have a negative impact on the aviation industry’s competitiveness and recovery post-COVID era. Furthermore, they claim that the reduction in emissions will be minimal since first and business-class passengers make up only a tiny fraction of all air travellers.
On the other hand, environmental groups and rail travel advocates are fully on board with the tax increase. They believe that it will encourage more people to choose rail travel over flights for short and medium-haul trips. These supporters are also urging authorities to invest in strengthening public transport networks and renewable energy sources to meet climate targets effectively.
It’s clear that the proposed tax hike has become a contentious issue, with valid arguments on both sides. Ultimately, it’s up to France’s government to decide whether or not to implement it.
Our finger crossed, as we await the future of the aviation industry, rail industry and the environment.
Emmanuel Omogunwa
Author
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