Campaign for Better Transport is calling on the Chancellor to use
this month's Budget to reform aviation tax to help boost the
public purse and ensure the airline industry pays its fair share
towards the costs of tackling climate change.
Ben Plowden, Chief Executive of Campaign for Better Transport,
said: "At a time when public finances are under considerable
pressure, it makes little sense that aviation continues to enjoy
tax breaks unavailable to almost every other form of transport.
This is increasingly difficult to justify when the Government is
looking for ways to fund public services and invest in a cleaner,
more sustainable transport system.
"The Budget is an opportunity to begin correcting this imbalance.
Introducing a kerosene tax, a frequent flyer levy and a higher
rate of Air Passenger Duty for private jets would ensure that
those who fly the most contribute more towards the environmental
and social costs of aviation. The revenue raised could be
invested in the local transport networks people use every day,
helping people access jobs, education and healthcare while
supporting the Government's goals on economic growth,
decarbonisation and reducing inequality."
Flying remains the most carbon-intensive form of travel, yet
unlike motorists, airlines do not pay duty on the fuel they use.
This means aviation fuel is effectively tax-free.
Also, in the UK, 15 per cent of people take 70 per cent of all
flights, while almost half the population does not fly at all. A
frequent flyer levy would apply to people taking multiple flights
each yearnot those simply taking an annual holidayand ensure
these frequent flyers' contribute more towards the environmental
costs of aviation.
Private jet passengers would also be affected by proposed
reforms. Private jet travel is estimated to be 20 to 30 times
more carbon-intensive per passenger than economy-class commercial
flights and can cost upwards of £10,000 per flight hour. Despite
the significantly higher emissions and greater cost of private
jet travel, private jet passengers on flights under 2,000 miles
currently pay the same rate of Air Passenger Duty as someone
travelling on a standard commercial flight.
Campaign for Better Transport believes the current tax regime
gives aviation a significant advantage over lower-carbon
transport options and undermines the Government's environmental
objectives. Reforming aviation tax would raise much needed public
funds and help rebalance financial incentives towards cleaner
forms of travel, whilst ensuring that all transport modes
contribute fairly towards meeting the country's environmental and
fiscal objectives.
ENDS
Notes to Editors
1. Read Campaign for Better Transport's
full Budget submission.
2. Countries which already
tax domestic aviation kerosene include Argentina, Australia,
Armenia, Azerbaijan, Bolivia, Brazil, Canada, Chad, Chile,
Colombia, Costa Rica, DRC, Dominica, Ecuador, Ethiopia,
Guatemala, Hong Kong, India, Indonesia, Japan, Jordan, Kenya,
Laos, Mexico, Myanmar, Nepal, Norway, Paraguay, Peru,
Philippines, Rwanda, Saudi Arabia, South Africa, Sri Lanka,
Switzerland, Taiwan, Tanzania, Thailand, Uganda, US, Venezuela
and Vietnam.
3. A Frequent Flyer Levy
would be an incremental tax targeted at the small percentage of
people who take multiple flights a year. One return flight, per
passenger, per year would be exempt, meaning people taking an
annual family holiday wouldn't pay anything extra. The levy would
apply to any additional flights and increase with each further
flight taken during the same 12 months.
4. Average private jet flights
costs.