UK Government still considering ‘aviation tax’

June 22: In the new UK Coalition Government’s emergency budget today, Chancellor of the Exchequer George Osborne said that a ‘pay-per-plane’ tax is to be considered instead of the Air Passenger Duty previously proposed by Labour.
The Board of Airline Representatives in the UK (BAR UK), representing 90 airlines, claims that the failure of the Government to rule out the proposed tax “shows that they do not have an effective plan for the industry”, claiming that it “will fail its environmental and economic objectives and drive trade and tourism to competing countries”.
Mike Carrivick, Chief Executive of BAR UK said “A per-plane tax (PPT) would place an excessive burden on the UK’s vital aviation industry and is completely out of touch with the country’s urgent need of visionary policies that meet business and environmental objectives in the decades to come.
“In addition, the introduction of the EU Emissions Trading Scheme (EU ETS) in 2012 means that the UK will be double taxed on aviation. Air travellers will be taxed at such exorbitant levels that UK residents will be priced out of flying and overseas visitors will choose to visit other countries instead, resulting in further damage to the UK’s global aviation position.”