The French government has recently announced its intention to raise taxes on airline tickets in order to fund the development of its railway sector. This decision is part of France's aim to promote train travel over air travel in order to meet its environmental goals.
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The newly introduced tax increase, which would be included in the next finance bill in 2024, would bring in around €100 million ($110 million) to the railway sector over the period between 2023 and 2027. Notably, the newly introduced tax will be applied to first-class and business-class tickets, which are the highest-priced options for passengers and also the most lucrative for airlines. The French transport minister Clément Beaune told Le Parisien that people who pay more for travel are usually those that are less sensitive to price increases.
On the other hand, the French aviation industry expresses concerns that this tax hike could potentially undermine the competitiveness of the sector, given that it is already channeling substantial investments into environmental initiatives. In addition, the airline industry is advocating for the newly imposed tax to contribute towards the advancement of the aviation sector, according to Le Parisien. France has previously implemented increases in taxes on airline tickets, with the initial introduction of this measure dating back to 2005 and a subsequent increase occurring in 2020. France has also been in the spotlight after introducing a ban on short-haul domestic flights lasting less than 150 minutes (or 2.5 hours) where a suitable alternative rail service exists. The ban effectively ruled out passenger air travel between Paris and the French cities of Nantes, Lyon, and Bordeaux. However, connecting flights have not been affected by the new laws.
As an added measure under the new regulations, France has also tightened rules on the use of private jets for short trips to promote sustainability and equitable transportation options for the general public. The newly implemented law specified that train services along the same routes should be sufficiently frequent, punctual, and effectively interconnected to cater to the requirements of passengers who might have chosen air travel. Overall, it seems that France is taking significant steps towards promoting sustainable transportation options and reducing its carbon footprint. The decision to raise airline taxes in order to fund railways is just one example of how France is working towards achieving its environmental goals.