In France, in the 1970's, public transport became increasingly popular, largely because of a new "transport allowance paid by employers" - i.e. a tax levied on salaries by local authorities. It should be remembered that in France organisational and financial responsibilities for urban transport are assumed locally. In 1986 running costs (about 22 thousand million francs for the Ile de France area, and 7.5 thousand million francs for the regional network) largely consisted of employees salaries (52% and 62% respectively), depreciation, and other financial charges (35% and 15% respectively). Income was earned from user fares (34% and 44%), from "other products" (9% and 7%), from the "transport allowance" (22% and 34% and from taxation (35% and 15%). The "transport allowance" was legally established within the Ile de France area in 1971, and within regional network in 1973. This tax is raised on the salaries earned in all companies who employ more than 9 people. Minimum payments fixed by law vary between 0.5% and 20% according to the size of the urban areas in question. The annual yield for 1986 can be estimated at an average of 570 F per person for Paris and 370 F per person for three selected urban areas with a population of more than 1 million; and 250 F (at a rate of 1%) for all other provincial urban areas.
Abstract