French President Jacques Chirac today proposed the creation of an international tax to help fight AIDS, saying such a measure could raise $10 billion each year.
"I propose today moving forward through the creation, in an experimental way, of a levy to finance the fight against AIDS," Mr Chirac told the World Economic Forum in Davos in a speech delivered by video link-up.
Mr Chirac said there were several options for such a tax. He said it could be imposed on international financial transactions but said should not hamper the normal functioning of the markets.
"It would allow us to mobilise $10 billion a year," Mr Chirac said.
Mr Chirac said such an international tax could also be raised on fuel used in air and sea travel or on airline tickets.
The original proposal for a tax on international currency transactions came from Dr James Tobin, a Nobel laureate economist at Yale.
Such taxes can be enacted domestically by national legislatures, but would require multilateral co-operation to be effectively enforced.
