§ 8. Mr. David MarshallTo ask the Chancellor of the Exchequer how many representations he has received concerning his plans to impose indirect taxes on air travel and most general insurance premiums.
§ Sir John CopeAbout 600 letters have been received by Ministers and officials and we have also met representatives of the industries concerned and other interests.
§ Mr. MarshallWhy has air travel been singled out for that tax? How does the Minister justify such discrimination and what does he intend to do about the scandalous double taxation on a return journey involving Glasgow, London and Edinburgh or vice versa—a journey that many people make? Will he take steps to end that iniquitous and vindictive anomaly?
§ Sir John CopeWe introduced the tax because, as my right hon. and learned Friend said in his Budget statement, taxation on air travel is low and it is therefore a suitable source from which to raise revenue. On the second half of the hon. Gentleman's question, that is a matter which we shall have the opportunity to return to when we debate the Finance Bill on Report in the next few days. We also discussed it in some detail in the Standing Committee considering that Bill.