§ Mr. DafisTo ask the Chancellor of the Exchequer what research has been undertaken by his Department on the treatment of jet engine fuel for taxation purposes within other EC countries; and what information he has on the revenue accrued from this form of taxation.
§ Sir John CopeThe treatment of jet engine fuel for taxation purposes within the EC is set out in relevant EC directives, particularly in article 8(1) of EC directive 92/81/EEC which provides for the exemption from excise duty of such fuel for the purposes of air navigation other than private pleasure flying.
Under article 8(4), which permits further exemptions or reductions, Belgium, Denmark, France, Ireland, Italy and Portugal are authorised to apply air navigation concessions.
The EC sixth VAT directive restricts VAT relief for the supply of aviation fuel to commercial aircraft operating on international routes.
No revenue accrues in the United Kingdom from excise duty on jet fuel. We have no information on such revenue accrued in other member states.