Government’s tax on flying is defended
Mar 4 2010 by William Green, The Journal
“However the Government believes that where possible and appropriate, it is right for the structure of revenue-raising taxes to reflect environmental impacts, as in the case of the reformed APD.”
It revealed that APD had raised £1.9bn in 2008-09 and was projected to do so again in the current financial year. The Government added exemptions from the tax – such as cabin crew and children under two – totalled £110m in 2008-09
And in making tax decisions, the response said: “The Chancellor takes account of the full range of relevant factors.”
It added a Department for Transport analysis in 2008 examined the climate change costs of aviation depending on a range of scenarios, but said: “It is important to bear in mind the considerable uncertainties associated with this data.
“It is not possible to give an accurate estimate of the costs of aviation.”
The developments come as dozens of backbench MPs call on the Government to review APD – including nine Labour MPs from the North East.
A total of 43 MPs have signed a Commons motion tabled by Newcastle North’s Doug Henderson urging ministers to conduct a “robust and transparent” assessment of the impact of APD on regional air links and consult airlines and airports before any further increases in the tax.
And, should the review confirm damage is being done, the motion says that the Government should “consider measures to relieve or protect those services under threat”.
