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Aviation Taxation

Volume 471: debated on Thursday 31 January 2008

I am announcing today the publication of a consultation document on reforming the taxation of aviation. My right hon. Friend the Chancellor of the Exchequer made the announcement at pre-Budget report 2007 that air passenger duty was to be replaced by a duty paid per plane. This reform will send better environmental signals, encourage the more efficient use of aircraft and ensure aviation makes a greater contribution to both environmental costs and the public finances.

This consultation document sets out options for the detailed design of the new per plane duty, puts forward a number of proposals for how it would operate, and seeks the views of stakeholders on these proposed options. The formal consultation period will run for twelve weeks from today and close on 24 April 2008. Design issues to be considered include the basis of the duty, exemptions, general aviation, impact on the freight and transit—or transfer—industry and administrative details.

The consultation document has been deposited in the Libraries of the House and is available in the Vote Office and on the Treasury website at: www.hm-treasury.gov.uk