Hefty Tax Boost Upcoming For French Charter Operators

Effective March 1, France will charge much higher Air Passenger Transport Tax rates for commercial business jet charter operators. Private aircraft owners will not be directly affected, but the European Business Aviation Association (EBAA) fears the precipitous rise in per-passenger taxes will cripple commercial charter flying, which would have a knock-on impact on all general aviation as support facilities such as fuel suppliers, FBOs and other support providers will face cutbacks.

The rates will vary depending on the mission but represent as much as a 300% increase over existing passenger taxes. For example, charter jet operators departing from French airports for destinations inside Europe will soon have to pay €420 ($436) per passenger; €1,015 ($1,054) for destinations up to 5,500 kilometers away (4,780 nautical miles); and €2100 ($2,181) for destinations farther afield. Flights within France will have to pay an additional 10% Value Added Tax (VAT).

And strangely (reportedly to keep calculations simple), all distances are to be calculated from Paris Charles DeGaulle Airport, rather than the actual distance of the flight.

Airlines did not escape the budget move, either. Economy ticket taxes will rise from €2.63 to €7.40 per passenger ($2.73 to $7.69) for flights within Europe, and more for business class or longer flights.

France’s newly appointed Minister of Public Accounts Mme Amélie de Montchalin said the new taxes are expected to generate €800-€850 million ($831-$883 million) more in revenue for the country. She told the French newspaper Le Parisien, “I am in favor. It is a measure of fiscal and ecological justice. The 20% of the population with the highest incomes are responsible for more than half the expenditure on air travel.”