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Article

5 Sep 2006

Author:
Jo Johnson, Financial Express

India may tax air tickets to fund AIDS drugs

Indian airline operators have warned the government against imposing a levy on air tickets to fund HIV/Aids programmes, part of a new global initiative to broaden access to drugs in development countries. Fourteen countries have pledged to implement the "international air ticket solidarity levy", which was launched by the United Nations...India will be a key beneficiary of an initiative that aims to create scale economies in the purchasing of drugs from global pharmaceutical companies. Its...fast-growing economy also make India's participation in the scheme important...in bringing affordable treatment to other developing countries...[The] Indian airline sector said the government risked stifling the take-up of low-cost air travel and needed first to improve woeful infrastructure before imposing unrelated new taxes on a nascent industry.