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Solidarity Tax on Plane Tickets Takes Effect, Impacting Ultramarine Passengers
Table of Contents
- 1. Solidarity Tax on Plane Tickets Takes Effect, Impacting Ultramarine Passengers
- 2. What is the TSBA?
- 3. New Tax Rates
- 4. Industry Reactions
- 5. Impact on Ultramarine Territories
- 6. Government Response and Mitigation Efforts
- 7. European Commission Involvement
- 8. Looking Ahead
- 9. How might the increased solidarity tax on airfares impact the decision-making of travelers considering trips to or from France’s ultramarine territories?
- 10. Leading Aviation Industry Voice: An Interview with Laurent Timsit on the Impact of the Increased Solidarity Tax on Airfares
- 11. Laurent Timsit, Director of the National Federation of Aviation and its Trades (FNAM)
- 12. Archyde News: The solidarity tax on plane tickets (TSBA) has substantially increased. Can you describe the new tax rates and their implications for passengers?
- 13. Archyde News: How will these changes affect travel to and from France’s ultramarine territories?
- 14. Archyde News: What is the European Commission’s role in this matter, and how might they help mitigate the impacts for ultramarine territories?
- 15. Archyde News: How might this increased tax affect the aviation industry’s competitiveness and France’s attractiveness as a destination?
- 16. Archyde News: What advice or recommendations would you give to passengers and the industry considering these changes?
- 17. Archyde News: Lastly, do you believe these changes will achieve their intended purpose of promoting environmentally friendly transportation options?
A controversial increase in the solidarity tax on plane tickets (TSBA), also known as the Chirac tax, went into effect on March 1, 2025, impacting airfares, especially for passengers traveling to and from France’s ultramarine territories.
What is the TSBA?
The TSBA, or solidarity tax on plane tickets, was previously €2.63 for flights within France or Europe. The Barnier government proposed increasing the tax to bolster public finances and promote environmentally friendly transportation options.
New Tax Rates
The increased tax rates,applicable to single,economy-class tickets,are as follows:
- Flights within France or to Europe: €7.40 (or €14.80 for a round trip)
- intermediate destinations: €15
- distant destinations (over 5,500 km): €40
Industry Reactions
the airline industry has expressed concerns about the impact of the tax increase. Laurent Timsit, director of the National Federation of Aviation and its Trades (FNAM), stated, “Companies have no choice to apply it, it is a tax that they must take on the passenger and donate to the state.” He further emphasized that airlines cannot absorb the tax increase, predicting, “Yes, it will be in the price of tickets.“
These remarks contradict government assertions that flight prices might not necessarily rise, depending on company policy.
“We explained that this increase seemed to us a bad thing for airlines, for passengers, for territorial continuity, for the attractiveness of France,” said Timsit.”So we have not changed our minds on this and we also regretted that there was no impact study that was made of this measure.“
Impact on Ultramarine Territories
The Federation of Overseas Businesses (FEDOM) has criticized the tax increase as “a new factor of dear life for our fellow citizens“.
Olivier Serva, a deputy from Guadeloupe, voiced concerns about the adequacy of the planned compensation, questioning, “After that, how can we talk of territorial continuity?“
While Manuel Valls, attempted to downplay the impact, stating, “the increase in the solidarity rate is very often less than 1 % of the price of the plane ticket“. FNAM director general countered, “These are not anecdotal amounts, when there is in particular a traveling family, that Clearly has a cost for the passenger.“
Government Response and Mitigation Efforts
In response to concerns,the government has allocated €14 million to Ladom,the overseas agency for mobility,to offset the increased costs for ultramarine residents. Additionally, Manuel Valls mentioned a figure of €16 million during a hearing at the National Assembly on February 19.
However, Ladom’s subsidies are limited to individuals with limited resources and specific groups, such as students and job seekers. In 2023, nearly 73,300 people benefited from mobility aid.
European Commission Involvement
The government is seeking a reduced tax rate for ultramarine destinations from the european Commission. According to Olivier Serva, this request will be reviewed within two to three months.However, Laurent Timsit remains skeptical, recalling a similar promise in 2019 that never materialized, saying, “The same promise was made in 2019, during the previous increase in the tax tickets.
And it has never seen the light of day. So we can assume that the position of the European Commission is not to be favorable to it.“
Looking Ahead
How might the increased solidarity tax on airfares impact the decision-making of travelers considering trips to or from France’s ultramarine territories?
Leading Aviation Industry Voice: An Interview with Laurent Timsit on the Impact of the Increased Solidarity Tax on Airfares
Laurent Timsit, Director of the National Federation of Aviation and its Trades (FNAM)
Archyde News: The solidarity tax on plane tickets (TSBA) has substantially increased. Can you describe the new tax rates and their implications for passengers?
Laurent Timsit: “The new tax rates applicable to single, economy-class tickets are €7.40 for flights within France or to Europe, €15 for intermediate destinations, and €40 for distant destinations.While the government argues that the impact on ticket prices may not be important,airlines cannot absorb this increase. It will inevitably be passed on to passengers, making air travel more expensive.
Archyde News: How will these changes affect travel to and from France’s ultramarine territories?
Laurent Timsit: “This tax increase is particularly concerning for our ultramarine territories. The Federation of Overseas businesses (FEDOM) and local deputies like Olivier Serva have expressed worry about the additional burden it places on residents. While the government has allocated funds to offset costs, the assistance is limited.For a traveling family,these are not anecdotal amounts.”
Archyde News: What is the European Commission’s role in this matter, and how might they help mitigate the impacts for ultramarine territories?
Laurent Timsit: “The government is seeking a reduced tax rate for ultramarine destinations from the European Commission. However, I must express skepticism, as a similar promise in 2019 never materialized. We hope, for the sake of our fellow citizens in these territories, that this time will be diffrent. But given the Commission’s past stance, we should not hold our breath.”
Archyde News: How might this increased tax affect the aviation industry’s competitiveness and France’s attractiveness as a destination?
Laurent Timsit: “The aviation industry is already fragile. An increase in operating costs, which is ultimately born by the passenger, can only harm the industry’s competitiveness. Furthermore, it risks making France less attractive as a destination, as visitors may opt for cheaper alternatives elsewhere in Europe.”
Archyde News: What advice or recommendations would you give to passengers and the industry considering these changes?
Laurent Timsit: “To passengers, I would advise booking tickets early to possibly mitigate the impact of the increased tax. For the industry, I urge stakeholders to continue engaging with policymakers to highlight the negative consequences of such measures. It’s crucial to find ways to support the industry and passengers while encouraging enduring travel options.”
Archyde News: Lastly, do you believe these changes will achieve their intended purpose of promoting environmentally friendly transportation options?
Laurent Timsit: “I’m not convinced that this measure alone will significantly promote greener transportation. While air travel should certainly be a focus for environmental improvements,this tax increase seems to penalize passengers and the industry more than it encourages sustainable alternatives. It’s a start,but far from adequate.”
