§ Mr. Peter AinsworthTo ask the Secretary of State for Transport if he will estimate the total United Kingdom air passenger demand in 2030 if a tax, equivalent to the current level of duty on unleaded petrol, were imposed on aviation fuel in 2015 and a sales tax of 17.5 per cent. were imposed on airline tickets for United Kingdom flight departures at the same date. [75034]
§ Mr. Jamieson[holding answer 21 October 2002]: The Government is committed to ensuring that the aviation industry meets its environmental costs. Since civil aviation is a international industry, the Government's approach is to support multilateral action through ICAO to end the exemption from tax for international aviation fuel. Unilateral action would create market distortions, such as "tankering" of extra fuel from aboard to avoid tax, and would have limited environmental benefits. The Government has given an undertaking not to remove zero rating for VAT purposes of international air (and sea) transport. In the consultation document, The Future Development of Air Transport in the United Kingdom: South East, it is estimated that policies to meet the contribution of aircraft emissions towards climate change would reduce demand by around 10 per cent.