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EU edges closer to airline ticket tax

BRUSSELS, Sept. 1 (UPI) -- The EU Thursday took another step towards slapping a development aid tax on airline tickets by issuing guidelines on how member states can collect the levy.

"A coordinated EU approach would deliver a political message of European solidarity towards developing countries, facilitate and clarify the operation of the measure for airline operators and passengers," the European

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Commission said in a statement.

If a one euro ($1.24) mandatory tax was applied in all member states, it would create revenues of $709 million a year, the commission report concluded. A five euro ($6.19) charge would boost the annual EU aid budget by $3.21 billion.

The 25-member bloc failed to agree on a common approach to funding development aid through airline taxes in June after some EU countries, such as Ireland and Greece, opted out of the proposed scheme fearing economic woes for their tourism and low-cost air carrier industries.

However, French President Jacques Chirac announced earlier this week that France would begin levying the tax next year. Other countries such as Germany, Belgium and Spain are set to follow suit shortly afterwards.

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