Monday, September 20, 2010

IT COSTS MORE TO BE GREEN

When governments need new ways to create quick and easy cash, they'll often invent new taxes and fees. Take for example the German government - when they needed a way to close some gaps in their budget, they invented the "Ecological air travel fee".  Disguised as a "green fund", passengers departing Germany will be expected to pay €8, €25 or €40, depending on the length of their flight. This means that a family of four, flying from Germany to the United States, will be charged €160 ($208) in addition to all the normal departure taxes, security fees and fuel surcharges.
Add to this the recent U.S. Tourism Promotion Fee, and you are quickly looking at $260 in fees before you even board the plane.  Of course, German airlines are not thrilled - and are rightfully worried that passengers will stop using Germany as a transit country, opting for stops in neighboring countries instead. Some passengers may even fly to countries like Holland or France and take a train to Germany. Naturally, the government does not expect that airlines will suffer from the new tax. The fee is expected to raise €1 billion ($1.3 billion) annually.
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