§ 18. Mr. Martenasked the Chancellor of the Exchequer if, in order to encourage low-cost inter-city air flights in Great Britain, he will reduce the tax on aviation gasoline for piston-engined aircraft to bring it into line with the tax on fuel for turbo-prop and jet aircraft.
§ Mr. MacDermotThe hon. Member's suggestion has been noted.
§ Mr. MartenIs the hon. and learned Gentleman aware that the tax on fuel for jet aircraft is at the rate of 2d. a gallon whereas the tax on fuel for piston-engined aircraft is at the rate of 39d. a gallon? Since most of the intercity services are carried out by piston-engined aircraft will not the Chancellor do something to reduce the tax on the fuel of piston-engined aircraft, if he is not able to abolish the tax on both?
§ Mr. MacDermotMy right hon. Friend is aware of the facts relating to the incidence of this duty, but he must have regard to wider considerations in determining what changes should be made in the level of taxation.