§ Mr. Colvin
asked the Chancellor of the Exchequer what were the decisive considerations in his determination of the new rate of duty on aviation gasoline.
§ Mr. Bruce-Gardyne
The new rate of duty on aviation gasoline was determined after a review which included consideration of the following factors:
- (a) the uses of aviation gasoline for business and leisure purposes;
- (b) the taxation of fuels for other forms of transport, not only jet-powered aircraft but also surface vehicles;
- (c) the prices of various forms of aviation gasoline, from "80/87" grade upwards;
- (d) the present and possible future relationships between the prices of various grades of aviation gasoline and road fuel; and
- (e) the need to avoid duty evasion, in particular the diversion to road use of gasoline which pays duty at the reduced rate, without disproportionate demand on official resources.