Treasury consulting on APD distance bands change; perhaps to 3…

treasury-consulting-on-apd-distance-bands-change;-perhaps-to-3…

Treasury consulting on APD distance bands change; perhaps to 3…

Treasury consulting on APD distance bands change; perhaps to 3 or 4 (just 2 now)
2021-03-25 23:36:00
The Treasury has a current consultation on “Aviation Tax Reform.”  Part of it is whether the level of Air Passenger Duty (APD) on domestic flights should be changed. Currently a passenger on a return domestic flight pays £13 x2 = £26, as they leave a UK airport twice. The cost is only £13 for a return flight to a European (under 2,000 miles) destination. They are also consulting about whether there should be more bands for APD for longer journeys. The government is aware that air travellers should pay more, if they fly further and thus cause the emission of more carbon.  In 2008 it was decided there would be 4 distance bands with increasing APD costs; under 2,000 miles; 2,000 – 4,000; 4,000 to 6,000; and over 6,000. But in 2014 this was changed to just two bands, under and over 2,000 miles. The consultation asks if the bands should be changed; if they should revert to the 4 levels there were between 2008 and 2014; or if there should be a new system, with three bands. These would be under 2,000 miles; between 2,000 and 5,500 miles; and over 5,500 miles. There were some potential technical difficulties with very large countries – eg. the US or Russia – so only considering the capital city, to categorise the country, can be unfair. Consultation closes 15th June 2021. .Tweet   HM Treasury. Aviation Tax Reform consultation – ends 15th June 2021. March 2021 Chapter 4.  International Distance Bands 4.1 The second part of this package focuses on reforms to APD that balance the government’s position on domestic flights with our environmental objectives, while maintaining the sector’s contribution to the public finances. 4.2 Aviation is currently responsible for 8% of the UK’s Greenhouse Gas Emissions.  18  (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/957605/final-greenhousegas-emissions-tables-2019.xlsx ) Emissions from international aviation are responsible for the majority of the sector’s environmental impact, contributing 37MtCO2e in 2019, and have more than doubled since 1990.     19 (ibid) The majority of the increase came in the 1990s and early 2000s, however emissions have also been increasing since 2012.   20   UK domestic aviation contributed 1.4 MtCO2e in 2019, representing less than 1% of UK Greenhouse Gas Emissions.  21 The aviation sector’s proportion of UK emissions is forecast to increase as we approach 2050, as other sectors decarbonise more quickly. The sector also contributes further negative externalities, including Nitrogen Oxide (NOx) and noise pollution. 4.3 As set out in paragraph 1.11, the government has put in place a wide range of initiatives to support the decarbonisation of the aviation industry and will be consulting on the overall strategy for the sector’s transition to net zero later this year. 4.4 This chapter sets out the government’s initial policy position that the number of international distance bands within APD should be increased. This would align APD more closely with our environmental objectives, and ensure that the overall proposed package of reforms balances our domestic connectivity and environmental goals, as well as maintaining the sector’s contribution to the public finances and our public services. The chapter also seeks views on the potential options through which this could be achieved. Rationale 4.5 Prior to COVID-19, the majority of the aviation sector’s Greenhouse Gas Emissions came from international aviation, as these account for the majority As set out in the below table, (see link for table)  long-haul flights are responsible for a greater amount of emissions on a per flight basis, as they cover longer distances. 4.6 A

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