§ Mr. John TaylorTo ask the Secretary of State for Transport what plans he has to increase revenues from taxation of aviation fuel; and what recent studies he has commissioned of the effect on air passenger numbers. [86898]
§ Mr. JamiesonDecisions on taxation are a matter for my right hon. Friend the Chancellor of the Exchequer. As announced in his pre-Budget report, the Government will discuss with stakeholders the most effective economic instruments for ensuring that, where justified, the industry limits or reduces its contribution to climate change, local air quality and noise pollution. Any decision to tax fuel used for international aviation would be subject to international agreement under the Chicago Convention. And EU Directive 92/81/EEC, on658W the harmonisation of the structures of excise duty on mineral oils, prohibits levying duty on most aviation fuel.
An analysis published in Air Traffic Forecasts for the United Kingdom 2000 (May 2000, pages 19–20) indicates that an environmental fuel tax introduced in 2006 and increased by 10 percentage points every year for the next nine years until the tax were 100 per cent. of fuel costs in 2015 would reduce passenger demand by 10 per cent. by 2020.