How is the tax on airline tickets calculated?

Mondo Tourism Updated on 2024-01-31

First of all, we need to understand what is the tax on airline tickets. The tax on air tickets is actually some additional fees that we have to pay to airlines, airports or ** when we buy air tickets, in addition to the fare. There are many types of these fees, some are for the construction and maintenance of airports, some are to subsidize the fuel costs of airlines, and some are to comply with the laws and regulations of various countries. The sum of these fees is the tax on the airline ticket.

So, how is the tax on air tickets calculated?In fact, the tax on air tickets is determined according to our flight, cabin, place of departure, destination, transit place and other factors. Different routes, airlines, airports, and countries have their own tax standards and calculation methods. Therefore, the tax on air tickets is subject to change, and we can only know the exact amount of taxes and fees when the ticket is issued.

To make it easier for you to understand, let me give you an example. Let's say you're flying from Beijing to New York, and you choose Economy Class on Air China, and your fare is 5,000 RMB. So, how much is the tax on your plane ticket?Based on the exchange rate on April 28, 2023, 5,000 yuan is about 770 US dollars. We can divide the tax on your plane ticket into the following parts:

Ticket price: This is the basic** of your flight ticket and depends on your flight and class of service. In this example, your ticket price is 5,000 RMB, which is about 770 USD.

Fuel surcharge: This is an additional fee charged by the airline to you based on changes in international oil prices to compensate the airline for fuel costs. In this example, your fuel surcharge is 1,200 RMB, which is about $184.

Airport Construction Fee: This is a one-time fee charged to you by China** for the construction and maintenance of the airport. In this example, your airport construction fee is 50 RMB, which is about 8 USD.

Departure Tax: This is a one-time fee charged to you by China** when you leave China to support public services and social security in China. In this example, your departure tax is 90 RMB, which is about 14 US dollars.

Entry Tax: This is a one-time fee charged to you by the U.S.** when you arrive in the U.S. to support U.S. customs and border protection. In this example, your entry tax is 5$60.

Transit tax: This is a one-time fee charged to you by the country or region where you are making a stopover to support the local airport and tourism industry. In this example, you don't have a stopover, so you don't have a transit tax.

So, what is the sum of the taxes on your plane ticket?We can calculate it with a simple formula:

Tax on air tickets = fare + fuel surcharge + airport construction fee + departure tax + entry tax + transit tax.

Substituting the above numbers into the formula, we get:

Tax on airline ticket = 770 + 184 + 8 + 14 + 560 + 0

Tax on airline tickets = 981$60.

So, the tax on your plane ticket is 981$60. This figure may vary depending on changes in exchange rates, oil prices, policies, etc., but the calculation method is the same.

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