Air ticket tax may fund AIDS projects

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Air ticket cess may fund AIDS project

NIRMALA GANAPATHY NEW DELHI, [MONDAY, AUGUST 28, 2006 10:21:33 AM]

Delhi Edition

AIR tickets may get more expensive, but for a good cause this time.

The government is looking at levying a cess on airline tickets to

fund HIV/AIDS programmes. This is part of an international idea

floated by France, which became the first country to implement it

from July. People flying out of French airports are already paying

about $47 more on airline tickets to fund HIV/AIDS, tuberculosis and

malaria programmes in developing countries. Brazil is following suit

and in all, 14 countries have agreed to the idea.

In India, the idea has generated heavy interest with four ministries

already examining the scheme. The external affairs, health, civil

aviation and finance ministries are all studying the mechanism's

viability from their perspective . According to sources, the

external affairs ministry favours the idea, as it thinks India

should be seen at the forefront of such schemes internationally , in

keeping with its growing stature.

The health ministry too is in support . " Our stand is that we

support it. For us, any money coming into the health sector is good.

But we do have some issues on mechanisms, including how it will be

deployed and whether the drugs will bought through a single

procurement, " said a health ministry official.

The basic idea is to levy a small tax on airline tickets sold to

passengers flying from airports located in participating countries.

The funds will go into an international drug purchase facility that

will procure expensive AIDS drugs and other medicines in bulk so as

to reduce prices. It would also encourage pharma companies to

produce drugs like antiretroviral medicines for children. The health

ministry official added that they were talking to the French on

these issues. French officials had come to India a couple of months

ago to meet central officials to discuss the mechanism. President

Jacques Chirac had reportedly written to the Indian government last

year on the issue.

The mechanism is seen to be most advantageous for smaller countries,

while India has a greater negotiating ability as it buys in bulk.

But the final decision-makers are the finance and civil aviation

ministries, which are looking into the scheme's financial aspects,

especially as it means increased air fares.

India can decide its own tax rates. France is levying about 1 Euro

for economy tickets within Europe, and as much as 40 Euro for first-

class international flights. Other participating countries are

Britain, Chile, Congo, Cyprus, Ivory Coast, Jordan, Luxembourg,

Madagascar , Mauritius, Nicaragua and Norway

http://economictimes.indiatimes.com/articleshow/1931691.cms