Liberal Democrats in Business

News and views from the Lib Dem Treasury, Trade and Industry Teams and the Liberal Democrat Business Forum

Aviation Woefully Undertaxed - Huhne

12.01.00am BST (GMT +0100) Tue 17th Oct 2006

Responding to the Oxford University report on aviation, Liberal Democrat Shadow Environment Secretary, Chris Huhne MP said: "Aviation is woefully undertaxed. The industry pays no duty on its kerosene fuel, and no Value Added Tax on its tickets. Moreover, the air passenger duty revenue has fallen by 8 per cent since 2000 despite a 35 per cent rise in passengers.

"We must shift the burden of tax onto emissions to encourage full flights, and raise tax to make clear the environmental cost of flying. We should also be pressing the European Union to put aviation into the emissions trading scheme and charge kerosene duty at least on internal EU flights, which can be done immediately."

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