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Airline ticket tax maybe suspended
Monday, 09 Sep, 2005
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US regulators are considering a suspension of the 7.5 per cent ticket tax paid by airline passengers, a move that would help carriers more easily raise fares and recoup some losses blamed on soaring fuel prices,
Transportation Secretary Norman Mineta said on Thursday that they are considering suspending the 7.5 per cent tax levied on all domestic US airline tickets as a means to help the ailing airline industry, who will be able to raise their fares more easily.
Secretary Mineta said he has discussed this idea with senior airline industry officials and said it was something his agency was exploring even though it would remove a major source of revenue for the trust fund that pays for air traffic services.
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