Germany ups the ante on airline fuel tax

Germany will this week add its voice to calls for a tax on airline fuel to increase aid to developing countries, despite harsh criticism of the initiative from the airline industry. As reported, carriers have warned of harsh consequences if such a tax was introduced, with a spokesman for EasyJet saying that a third of carriers could go out of business within a year. But, according to the Financial Times, the German finance minister Hand Eichel will this week raise the issue once more in Brussels, stating: “Many member states who were previously sceptical of such a tax would now support the proposal.” Germany’s media is suggesting that the country’s finance ministry is proposing a tax of 300 euros per tonne of fuel, which would add between five and 10 euros to a one-way ticket within the EU. Germany is credited as first proposing the tax at a meeting of G7 minsters as a way of paying for immunisations and vaccines in developing countries, especially Africa. Jean-Claude Junckeer, prime minister of Luxembourg, who holds the EU presidency at present, is expected to table the motion of Thursday, the Financal Times reports. Report by Tim Gillett, News From Abroad Ltd.