HC Deb 11 December 1997 vol 302 cc644-5W
Dr. Tonge

To ask the Chancellor of the Exchequer what progress has been made on European Union negotiations on taxation on aviation fuel. [19758]

Dawn Primarolo

There are no Commission proposals before the Council at present to end the current exemption of aviation fuel used in international commercial traffic. The Commission has been asked by the ECOFIN Council, on 9 June 1997, to study the environmental and economic effects in Europe of ending the current exemption of aviation fuel. The study is not likely to be completed before May 1998.

Dr. Tonge

To ask the Chancellor of the Exchequer what taxes are levied on aviation fuel in the United Kingdom. [19743]

Dawn Primarolo

Aviation turbine fuels for aircraft use are not subject to excise duty. Aviation gasoline is charged at the rate of £0.2255 per litre (£1.025) per gallon). Supplies of both types of fuel for commercial flights within the United Kingdom and for all private flights are liable at the standard rate of Value Added Tax.

Dr. Tonge

To ask the Chancellor of the Exchequer how much revenue would be raised if aircraft fuel was taxed at the same rate as commercial fuel for road transport assuming no alteration in demand. [19744]

Dawn Primarolo

The estimate requested by the hon. Member on taxing aviation fuel at the same rate as diesel would raise approximately £4 billion, assuming no alteration in demand.