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Air Passenger Duty

Volume 459: debated on Tuesday 1 May 2007

Budget 2007 stated that the aviation industry had suggested to the Government that the way in which air passenger duty defined different classes of travel could send inappropriate environmental signals and cause market distortions, for example for “business class only” flights and premium economy type seats. We confirmed in the Budget that we are prepared to consider changes to the definition if these could be done on a broadly revenue neutral basis, and we confirmed that we would be discussing further with the industry how this could be achieved.

Today I am taking forward this commitment through the publication of a consultation document, a copy of which is being placed in the Library of the House and made available on the HMRC website.