Campaigners tell the Treasury that aviation taxation must be reformed

campaigners-tell-the-treasury-that-aviation-taxation-must-be-reformed

Campaigners tell the Treasury that aviation taxation must be reformed

Campaigners tell the Treasury that aviation taxation must be reformed
2021-10-19 11:00:00
In a joint letter to the Chancellor, AEF, T&E, Tax Justice, Green Alliance, Bellona and Greenpeace have called on the UK Government to reform UK tax in order to better reflect the environmental costs of aviation. The letter has been sent in advance of the Autumn Budget and Spending Review plans which expected to be announced soon. Since 1990, UK’s aviation’s emissions have increased by 125%, and were rising steeply till the pandemic. Now that the government has decided to include international aviation and shipping in future carbon budgets, immediate taxation reforms are needed. The letter suggests a jet fuel tax, of at least the level proposed by the European Union, of €0.38/ litre. There also needs to be VAT on all air tickets, at a rate of 20%. To properly account for the climate warming effect of air travel, which is likely to be up to 3 times as much as that of the CO2 alone, there needs to be an additional charge. That would be world-leading.  It the aviation sector was taxed in a more realistic manner than now, it would incentivise progress on decarbonisation initiatives. The government is not prepared to restrict air travel demand, but higher ticket prices, due to higher tax, would have this effect .Tweet     REFORM AVIATION TAXATION TO ACCURATELY REFLECT AVIATION’S ENVIRONMENTAL COST, CAMPAIGNERS TELL TREASURY 18th October, 2021 The Aviation Environment Federation (AEF)  In a joint letter to the Chancellor, AEF, T&E, Tax Justice, Green Alliance, Bellona and Greenpeace have called on the UK Government to reform UK tax in order to better reflect the environmental costs of aviation. The letter has been sent in advance of the Autumn Budget and Spending Review plans which expected to be announced soon. Since 1990, UK’s aviation’s emissions have increased by 125%, in stark contrast to the UK’s overall emissions which have decreased by 43% over the same period. In 2019, aviation emissions were higher than ever before. This is, in part, as a result of the lack of taxation the industry faces. Following the Government’s decision to include international aviation and shipping in future carbon budgets, we need immediate taxation reforms. Our letter sets out a series of recommendations, including: Kerosene tax Airlines do not pay taxes or excise duties for the kerosene fuel that they uplift in the UK. The UK should at least match the European Commission’s proposal to apply taxes to all flights with

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