UK Treasury Launches Consultation On Aviation Duty

by Robert Lee, Tax-News.com, London

31 January 2008

A consultation on proposed changes to aviation duty in the UK was launched on Thursday by the Treasury.

The consultation follows an announcement in the 2007 Pre-Budget Report that Air Passenger Duty is to be replaced by a duty paid on a per plane basis in November 2009. According to the government, this reform will send better environmental signals, encourage the more efficient use of aircraft, and ensure that aviation makes a greater contribution to both environmental costs and the public finances.

'Aviation duty: a consultation,' will run for twelve weeks, and will close on 24th April, 2008. It sets out options for the detailed design of the new per plane duty, puts forward a number of proposals for how it would operate, and seeks views on these proposed options. Design issues to be considered include the basis of the duty, exemptions, impact on the freight and transit/transfer industry, and administrative details.

The government is encouraging responses from industry bodies, organisations, companies and individuals from all parts of the aviation sector. It is also seeking to encourage those with an interest in the important issue of aviation's impact on the environment to respond to the consultation.

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