The Tax Barometer is composed of four trip elements: lodging, car rental, meals, and airport arrival and departure.  Each element of the trip is priced according to a standard purchase by a hypothetical "WTTC Traveler" in each destination.  This trip includes the purchase of four nights' lodging, four days' car rental, twelve meals, and one set of international arrival and departure airport charges. Taxes imposed on these purchases are then identified, recorded, and developed into a sector index.  Next, these elements are aggregated into a composite index for the destination, based on the average cost of each element included in the standardized trip.  If you would like more information on the development of the Tax Barometer, please refer to our research methodology.

Rank
Total tax $ for 5-day/4-night trip: $187.93 31
Percentage of total item cost: 14.46% 23
Overall tax index:

119

 26

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Paris.  The second item (percentage of total item cost) indicates what percentage of the total bill is devoted to taxes.  The last item (overall tax index) reflects the cumulative change in the amount of tax paid in U.S. dollars between June 1994 and June 2002.  The rankings show how Paris compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Paris currently has an overall Tax Barometer index of 119, indicating a 19% increase in travel-related taxes since June 15, 1994, the 26th highest increase among all 52 surveyed destinations.  This change can be attributed to increases in each of the four monitored travel sectors.  For a five-day, four-night trip to Paris, travelers can expect to pay approximately $188.00 in tourism-related taxes, a total that ranks as the 22nd highest among all surveyed destinations.

 

Rank
Average price for 4-day rental (mid-size) without taxes: $170.67

-
Airport access fee: €22.00
Value added tax (VAT): 19.60% -
Vehicle licensing fee/road tax (per day): €1.89
Total charges for 4-day rental with taxes: $238.78 -
Total tax $ for 4-day rental: $68.11 44
Percentage of total car rental cost: 28.52% 47
Car rental tax index: 124 26

( in rank column indicates a tax increase in Tax Barometer No. 11)

Summary:  Car rental taxes have risen 24% in Paris since 1994, the 26th highest increase among all 52 surveyed destinations.  This change can be attributed to increases in the airport access fee, which was raised from FF 98.00 to €22.00 in 2002, and in the vehicle licensing fee, which was increased from FF 12.64 to €1.89 (also in 2002).  Tax charges on a four-day mid-sized car rental total approximately $68.00, an amount that ranks as the ninth highest among all surveyed destinations.

 

Rank
Average price for 4-nights lodging without taxes: $650.98

-
Value added tax (VAT): 5.50%

-
Bed tax (per night): €0.85

-
Total charges for 4-nights lodging with taxes: $690.30

-
Total tax $ for four-nights: $39.32

16
Percentage of total hotel room cost: 5.70%

10
Hotel tax index: 110

34

Summary:  Hotel taxes have risen 10% in Paris since 1994, the 18th largest increase among all 52 surveyed destinations and the sixth largest among the 18 surveyed destinations in Europe.  This change can be attributed to the introduction of a FF 7.00 per night bed tax in 1995, which has since been changed to a €0.85/night charge.  Visitors can expect to pay around $39.00 in taxes for four nights lodging, a total that ranks as the 16th lowest overall and the fifth lowest among European destinations.

 

Rank
Average price for 12 restaurant meals without taxes: $309.80 -
Value added tax (VAT): 19.60% -
Total charges for 12 meals with taxes: $370.53 -
Total tax $ for 12 meals: $60.73 46
Percentage of total restaurant meals cost: 16.39% 46
Restaurant tax index: 105 31

Summary:  Restaurant taxes have increased 5% in Paris since 1994, the 22nd highest increase among all 52 surveyed destinations.  This change can be attributed to a 1.0% increase in the VAT on restaurant meals.  The VAT, which is 18.6% in the base index, was increased to 20.6% in 1996 before being lowered to 19.6% in 2000.  The approximate total of $61.00 in taxes collected on 12 restaurant meals ranks as the seventh highest among all surveyed destinations.

 

Rank
International passenger service charge: €9.93
Civil aviation tax: €6.66
International airport tax: €3.58
Total tax $ for international arrival and departure: $19.77 28
Percentage of total trip cost: 1.52% 27
Air passenger tax index: 197 32

( in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:  Taxes on international air passengers have increased 97% in Paris since 1994, the 21st highest increase among all 52 surveyed destinations and the third highest among the 18 surveyed destinations in Europe.  This change can be attributed to the introduction of a new international airport tax coupled with several increases to the passenger service charge and the civil aviation tax.  The international airport tax was introduced in 2000 at the rate of FF 16.00 to finance fire services, bird strike prevention, and environmental monitoring.  It was increased to FF 18.00 in 2001 and  to €3.58 in 2002.  The international passenger service charge has been increased several times from its base index level of FF 50.34, most recently in March 2002 when it was increased from FF 59.00 to €9.93.  The civil aviation tax, formerly called the safety and security charge, has been raised four times from its base index level of FF 18.00.  The most recent increase occurred in 2002, when it was raised from FF 39.00 to €6.66.  Tax charges on international arrivals and departures total approximately $20.00, the 25th highest among all surveyed destinations and the sixth highest among the 18 European destinations.

 

Barometer No. 1: A new FF 7.00 per night room tax was added to the existing room VAT of 5.5%. 

Barometer No. 2: France increased its national VAT from 18.6% to 20.6%.  The safety and security tax at Charles de Gaulle Airport was also increased from FF 17.00 to FF 18.00, although it was offset by a 1.00 FF decrease in the equalization fund tax.

Barometer No. 3: The international air passenger service charge was increased from FF 50.84 to FF 52.87. 

Barometer No. 5: The international air passenger service charge was increased from FF 52.87 to FF 54.00.

Barometer No. 6: The safety and security charge was increased from FF 21.00 to FF 35.00.  Also, an airport surcharge of FF 80.00 was introduced to all car rentals.

Barometer No. 7: The safety and security tax was increased from FF 35.00 to FF 39.00.  In addition, the international air passenger service charge was increased from FF 54.00 to FF 61.00. 

Barometer No. 8:  The FF 1.00 equalization fund tax was eliminated and the international air passenger service charge was reduced from FF 61.00 to FF 56.00.  Also, the safety and security charge was renamed the civil aviation tax. 

Barometer No. 9: The VAT rate on car rentals and restaurant meals was lowered to 19.6%.  In addition, the airport access fee for car rentals was increased from FF 80.00 to FF 98.00, while the vehicle licensing fee/road tax was lowered to FF 12.54.  A new international airport tax was also introduced at the rate of FF 16.00 to finance fire services, bird strike prevention, and environmental monitoring.

Barometer No. 10: The international airport tax was increased from FF 16.00 to FF 18.00 (effective 6-12-01) and the international passenger service charge was increased from FF 56.00 to FF 59.00, effective 4-1-01.

Barometer No. 11: The airport access fee on car rentals was increased from FF 98.00 to €22.00.  In the hotel sector, the FF 7.00/night bed tax was changed to  € 0.85/night.  In the airline sector, the civil aviation tax was increased from FF 39.00 to €6.66; the international airport tax was increased from FF 18.00 to €3.58, and the passenger service charge from FF 59.00 to €9.93.  These changes took effect during the first quarter of 2002.

 

 

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