Skip to main content

Taxation: Aviation

Volume 458: debated on Wednesday 14 March 2007

To ask the Chancellor of the Exchequer if he will assess the merits of exempting charities from the requirement to pay air passenger duty. (126544)

Air passenger duty increased on 1 February in recognition of the environmental costs of air travel. This will deliver carbon savings of around 0.3MtC a year by 2010-11, or around 0.75MtC per year by 2010-11 when the effect of non-carbon dioxide emissions at high altitude is taken into account.

The Government are committed to supporting charities and the third sector through a range of tax reliefs and other measures. In 2005-06, tax reliefs for the charitable sector were worth in excess of £2.5 billion.

Given the level of support already extended to charities through the tax system and the administrative structure of air passenger duty the Government does not currently believe that an air passenger duty exemption would be appropriate.

The Chancellor keeps all taxation policy under review, and considers all relevant economic, social and environmental factors in deciding future policy.