§ Norman BakerTo ask the Chancellor of the Exchequer (1) what assessment he has made of(a) the practicality and (b) the potential revenue stream arising from the introduction of taxation on aviation fuel used in domestic flights; [80840]
(2) what progress is being made towards the introduction of an EU aviation fuel tax regime. [80841]
§ John HealeyThe Government are aware of practical issues surrounding the taxation of aviation fuel used in domestic flights, including the encouragement of 'tankering' fuel from abroad. Revenue streams would depend on a variety of factors including the level of duty and degree of tankering. We will publish shortly an Air Transport White Paper that will examine the potential188W for using economic instruments to encourage the aviation industry to take more account of its external costs.
The European Council of Finance Ministers has asked the European Commission to pursue with the International Civil Aviation Organisation the possibility of taxing aviation turbine fuel.