§ John BarrettTo ask the Chancellor of the Exchequer (1) what plans he has to increase air passenger duty; [136399]
(2) what plans he has to end the tax exemption status of aviation fuel. [136400]
§ John HealeyI refer the hon. Gentleman to the answer I gave to the hon. Member for Eddisbury (Mr. O'Brien) on 28 October 2003,Official Report, column 206W. Levels of all taxes are reviewed as part of the annual Budget process, taking account of a range of social, economic and environmental considerations. The Chicago Convention prohibits the imposition of taxes or charges on fuel kept on board aircraft and consumed on international flights. The UK is also bound by bilateral air service agreements which impose further restrictions.
The 2002 Pre-Budget Report stated that the Government would discuss with stakeholders the most effective economic instruments for ensuring that the industry is encouraged to take account of, and where appropriate, reduce its contribution to global warming, local air and noise pollution. The Government's views will be set out in the Air Transport White Paper, due to be published later this year.