Treasury Aviation Taxation consultation – some responses

treasury-aviation-taxation-consultation-–-some-responses

Treasury Aviation Taxation consultation – some responses

Treasury Aviation Taxation consultation – some responses
2021-06-18 11:38:00
The Treasury recently held a consultation on aviation tax reform. It closed on 15th June. The consultation proposed reducing or removing Air Passenger Duty (APD) on domestic flights. It is currently £26 on a return domestic flight, £13 for each part departing from a UK airport (it is only £13 for a return flight to Europe). It also asked about changing the APD on longer flights. Currently any flight to a destination over 2,000 miles away pays £82 APD. The consultation has options for making more long haul bands.  The Aviation Environment Federation (AEF) has responded in detail, as have Hacan, Stansted Airport Watch (SAW) and the Aviation Communities Forum (ACF). AEF said it “expresses opposition to any reduction in taxes for an already under-taxed industry. For an industry which pays no fuel duty or VAT on tickets, APD is already too low to ensure that airlines make a fair contribution to public finances. Government should be looking at tax increases, not decreases, we argue, particularly given that flights are disproportionately taken by people on higher incomes.” There are arguments both ways, but most environmental organisations think there should be more long-distance bands, with higher rates for longer distances. .Tweet HM Treasury. Aviation Tax Reform consultation – ended 15th June 2021.  The Treasury consultation document  CUTTING TAX ON DOMESTIC ROUTES WHICH HAVE REASONABLE LOWER CARBON ALTERNATIVES SENDS THE WRONG MESSAGE ON CLIMATE 16th June, 2021   (The Aviation Environment Federation – AEF) AEF has responded to the government consultation on aviation tax reform which closed on Monday 14th June. The consultation primarily focused on the Government’s proposal to reduce air passenger duty (APD) rates on domestic routes. It was implied – but not stated – that any losses would be balanced out with increased costs on some international routes. AEF expresses opposition to any reduction in taxes for an already under-taxed industry. For an industry which pays no fuel duty or VAT on tickets, APD is already too low to ensure that airlines make a fair contribution to public fina

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