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Taxation: Aviation

Volume 698: debated on Thursday 31 January 2008

My honourable friend the Economic Secretary to the Treasury (Kitty Ussher) has made the following Written Statement.

I am announcing today the publication of a consultation document on reforming the taxation of aviation. My right honourable friend the Chancellor of the Exchequer (Alistair Darling) 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 12 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/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.