§ Mr. DafisTo ask the Secretary of State for the Environment, Transport and the Regions if agreement has been reached with the Norwegian Government concerning the liability of British airlines to pay Norwegian aviation tax; and if he will make a statement. [70940]
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§ Ms Glenda JacksonThe Government believe that the tax on aviation fuel, introduced by Norway on 1 January 1999, is in breach of the UK/Norway Air Services Agreement, signed in Oslo on 26 January 1979, which exempts aviation fuel for international flights from tax. Officials wrote to the Norwegian authorities on 4 January drawing attention to this apparent breach and asking them to rescind the tax. I understand that the Norwegian Government are currently reviewing the position, in the light of this and other similar representations received.
In principle, the Government are in favour of an aviation fuel tax, but we believe this should be agreed at international level. Action by individual states or by groups of states would infringe existing international agreements, distort airline competition and could have environmental disbenefits.