Thursday, September 01, 2005

Aviation: Chile to impose airline tax to fight poverty

Chile will impose a $4 tax on airline tickets to help finance the struggle against poverty in the developing world.

President Ricardo Lagos said: "We are a small country, but we can help." The tax will be added to the existing $26 airport tax. Half of this amount will go to Chile's tourism industry and the other half will be donated to a fund to fight poverty and health issues.

I certainly hope Australia does not follow this new trend. Australian air travellers are already burdened by a myriad of taxes that has led to the absurd situation that in some cases, taxes amount to more than the cost of the trip.