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Aviation: Taxation

Volume 702: debated on Monday 23 June 2008

asked Her Majesty's Government:

How much additional revenue they estimate will be generated annually if airlines are taxed per plane rather than per passenger. [HL4036]

The amount raised by the tax is distinct from the design. Theoretically, tax revenue from aviation could be raised either by a per-passenger or a per-plane duty.

asked Her Majesty's Government:

What estimate they have made of how much tax the average passenger will pay if airlines are taxed per plane rather than per passenger. [HL4037]

The Chancellor announced in the Pre-Budget Report 2007 that air passenger duty would be replaced by a per-plane duty in November 2009. A formal consultation on this new tax, which considered all aspects of the operation of the duty, closed on 24 April. Over 160 responses were received and Treasury officials are currently considering and analysing these responses. No decisions have yet been made on the design of the duty. The Chancellor will announce the policy in the autumn.

As to how much tax the average passenger will pay, it will be dependent on a commercial decision by the airline involved.