Fly ‘n’ fund AIDS policy on the cards
The government is looking at levying a cess on airline tickets to fund HIV/AIDS programmes. This is part of an international idea floated by France, which became the first country to implement it from July.
By Nirmala Ganapathy & Sunny Verma, TNN |
NEW DELHI: Air tickets may get more expensive, but for a good cause this time. The government is looking at levying a cess on airline tickets to fund HIV/AIDS programmes. This is part of an international idea floated by France, which became the first country to implement it from July. People flying out of French airports are already paying about $47 more on airline tickets to fund HIV/AIDS, tuberculosis and malaria programmes in developing countries. Brazil is following suit and in all, 14 countries have agreed to the idea.
In India, the idea has generated heavy interest with four ministries already examining the scheme. The external affairs, health, civil aviation and finance ministries are all studying the mechanism’s viability from their perspective.
The government is considering a levy on domestic fares too. The civil aviation ministry is discussing the issue with the finance ministry now. “We are talking to the finance ministry to levy a cess on air tickets - both domestic as well as international. We have not finalised the magnitude of the cess as yet. It will be decided soon, keeping in mind the interest of consumers as well,” civil aviation secretary Ajay Prasad told ET.
According to sources, the external affairs ministry favours the idea of a cess, as it thinks India should be seen at the forefront of such schemes internationally, in keeping with its growing stature.
The health ministry is also in support. “For us, any money coming into the health sector is good. But we do have some issues on mechanisms, including how it will be deployed and whether the drugs will bought through a single procurement,” said a health ministry official.
The basic idea is to levy a small tax on airline tickets sold to passengers flying from airports located in participating countries. The funds will go into an international drug purchase facility that will procure expensive AIDS drugs and other medicines in bulk so as to reduce prices. It would also encourage pharma companies to produce drugs like antiretroviral medicines for children. The health ministry official added that they were talking to the French on these issues. French officials had come to India a couple of months ago to meet Central government officials to discuss the mechanism. President Jacques Chirac had reportedly written to the Indian government last year on the issue.
In India, the idea has generated heavy interest with four ministries already examining the scheme. The external affairs, health, civil aviation and finance ministries are all studying the mechanism’s viability from their perspective.
The government is considering a levy on domestic fares too. The civil aviation ministry is discussing the issue with the finance ministry now. “We are talking to the finance ministry to levy a cess on air tickets - both domestic as well as international. We have not finalised the magnitude of the cess as yet. It will be decided soon, keeping in mind the interest of consumers as well,” civil aviation secretary Ajay Prasad told ET.
According to sources, the external affairs ministry favours the idea of a cess, as it thinks India should be seen at the forefront of such schemes internationally, in keeping with its growing stature.
The health ministry is also in support. “For us, any money coming into the health sector is good. But we do have some issues on mechanisms, including how it will be deployed and whether the drugs will bought through a single procurement,” said a health ministry official.
The basic idea is to levy a small tax on airline tickets sold to passengers flying from airports located in participating countries. The funds will go into an international drug purchase facility that will procure expensive AIDS drugs and other medicines in bulk so as to reduce prices. It would also encourage pharma companies to produce drugs like antiretroviral medicines for children. The health ministry official added that they were talking to the French on these issues. French officials had come to India a couple of months ago to meet Central government officials to discuss the mechanism. President Jacques Chirac had reportedly written to the Indian government last year on the issue.
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The mechanism is seen to be advantageous for smaller countries, while India has a greater negotiating ability as it buys in bulk. But the final decision-makers are the finance and civil aviation ministries, which are looking into the scheme’s financial aspects, especially as it means increased air fares. India can decide its own tax rates. France is levying about e1 for economy tickets within Europe, and as much as e40 for first-class international flights. Other participating countries are Britain, Chile, Congo, Cyprus, Ivory Coast, Jordan, Luxembourg, Madagascar, Mauritius, Nicaragua and Norway. Start a SIP with as low as ₹500 with ET Money App!
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