HC Deb 11 May 2004 vol 421 cc271-3W
Mr. Best

To ask the Chancellor of the Exchequer what assessment he has made of the impact on demand forecasts for air travel of(a) taxing aviation fuel at the same level as motor fuel, (b) the aviation industry paying the social and environmental costs of air travel and (c) applying VAT to airfares. [168721]

Mr. Meacher

To ask the Chancellor of the Exchequer (1) what estimate he has made of the additional revenue that would be raised, assuming no change in demand, if aviation fuel were taxed at the same rate as will apply to ordinary unleaded petrol for motor vehicles as from 1 September; [171362]

(2) what estimate he has made of the additional revenue that would be raised, assuming no change in demand, if VAT at 17.5 per cent. or a sales tax at 17.5 per cent. were imposed on all domestic and international airline tickets for flights departing from UK airports. [171363]

John Healey

A discussion paper published jointly by HM Treasury and the Department for Transport in March 2003, entitled "Aviation and the Environment:

using economic instruments", considered the role of economic instruments and the environmental costs of road transport. This was also considered in Air Transport White Paper, "The Future of Air Transport",

published on 16 December 2003 and in chapter 5 of "Aviation and Global Warming", published by the Department for Transport on 10 February 2004.

The Air Transport White Paper set out the conclusions of the Government's analysis, including our view that aviation should be brought within the EU Emissions Trading Scheme by 2008, as the most effective way of tackling the climate change impact. Along with other measures to tackle local environmental impacts, this will help to ensure that the air transport sector meets its environmental costs.

The Government have not undertaken an analysis of the demand impacts of specific measures which are not legally possible, such as tax on fuel for international flights or VAT on air transport, but we are continuing to explore options for using economic instruments.

Mr. Meacher

To ask the Chancellor of the Exchequer what the forecast revenue from air passenger duty is for 2004–05. [171365]

John Healey

Projected receipts from all taxes and duties are published in table C8 of the Financial Statement and Budget Report (HC 301). The forecast for Air Passenger Duty in 2004–05 is £0.9 billion.