Plans to increase the so-called solidarity tax (TSBA) on airline tickets were announced by the French government on Wednesday as part of the 2025 budget plan.
In particular, the French Ministry of Economy and Finance (Bercy) is planning spending cuts and tax increases of around €60 billion for next year in an effort to contain the widening budget deficit and boost investor confidence in the country.
As part of this policy, you are considering raising an extra billion euros from air transport by significantly increasing the solidarity tax (TSBA) on airline tickets.
The proposed €1 billion tax will have an impact on the price of tickets for flights departing from France, industry professionals warn. “If this plan goes ahead, there will be an impact on ticket prices,” notes Air France.
According to Les Echos, the increase in the TSBA on airline tickets would mean a tripling of the revenue from this tax, which currently stands at €460 million.
The financial daily points out, for example, that the TSBA will increase from €63.07 to €200 for a long-haul flight in business class over 5,000 km and to €100 for flights between 1,000 and 5,000 km. Similarly, in economy class, it will increase from €7.51 to €60 for flights of more than 5,000 kilometres and to €42 for journeys between 1,000 and 5,000 kilometres.
The reactions
The new French government’s plans have created a storm of opposition, with industry experts worried that such a decision would jeopardise an entire industry, with dramatic consequences for workers and passengers.
The Director General of the International Air Transport Association (IATA), Willie Walsh, spoke of bad results for the country’s economy and its aviation industry.
“If these tax proposals are implemented, it will be a disaster for France. Aviation is a driver of employment and prosperity, as well as a proven factor that accelerates growth in other sectors of the economy,” he said.
Mr Walsh said any new taxes would hit the tourism industry and the aviation sector in France, which has fewer passengers and serves fewer destinations than before the pandemic. These measures, he added, may also reduce the massive funding needed to switch to sustainable aviation fuels.
“The only answer to France’s deficit is to grow its economy and broaden the tax base, not to tax the productive parts of the economy,” the IATA chief pointedly stressed.
