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Taxation: Aviation

Volume 475: debated on Wednesday 14 May 2008

To ask the Chancellor of the Exchequer what recent discussions he has had with Ministerial colleagues on levels of aviation duty on flights between Northern Ireland and the rest of the UK. (204417)

At pre-Budget report 2007, the Government announced that they intended to replace air passenger duty with a duty payable per plane, rather than per passenger. This reform will take place on 1 November 2009 and has the objective of sending better environmental signals, and also ensuring that aviation makes a greater contribution to covering its environmental costs, while ensuring that a fair level of revenue is raised from the sector in order to support public services.

The public consultation on the design of the new duty opened on 31 January 2008 and closed on 24 April. The Government have received a number of responses to date, including one from the Northern Ireland Executive. All of these responses—including that from the Northern Ireland—will be carefully analysed by HM Treasury before final announcements on the design of the duty are made.