News
Air tax to shift from passengers to planes
10 October 2007
The system of air travel taxation is to be changed to focus on planes and the distance they fly rather than passengers, the government has announced.
Chancellor of the Exchequer Alistair Darling announced that the new method will come into effect in November 2009 and the government said that it should lead to higher efficiency in the aviation market.
Environment secretary Hilary Benn said: 'The changes to how aviation is taxed, moving to the taxation of planes rather than passengers, will encourage airlines to operate more efficiently.'
Greenpeace welcomed the prospect of a tax that will focus on environmental goals but stressed its opposition to government policy in other areas of the aviation market.
"A tax that penalises airlines for flying half-empty planes makes a lot of sense, but the government's support for the unrestrained expansion of UK airports seriously undermines its credibility," said John Sauven, executive director of the group.
Mike Rutter, chief commercial officer of Flybe, said that it was important for the government to avoid a 'one size fits all' method and adopt an approach that is tailored to address the carbon footprints of various airlines and aircraft.
Opodo is a leading online travel company offering flights, hotels, rental cars and holidays worldwide. Search for travel deals.
© Adfero Ltd
Chancellor of the Exchequer Alistair Darling announced that the new method will come into effect in November 2009 and the government said that it should lead to higher efficiency in the aviation market.
Environment secretary Hilary Benn said: 'The changes to how aviation is taxed, moving to the taxation of planes rather than passengers, will encourage airlines to operate more efficiently.'
Greenpeace welcomed the prospect of a tax that will focus on environmental goals but stressed its opposition to government policy in other areas of the aviation market.
"A tax that penalises airlines for flying half-empty planes makes a lot of sense, but the government's support for the unrestrained expansion of UK airports seriously undermines its credibility," said John Sauven, executive director of the group.
Mike Rutter, chief commercial officer of Flybe, said that it was important for the government to avoid a 'one size fits all' method and adopt an approach that is tailored to address the carbon footprints of various airlines and aircraft.
Opodo is a leading online travel company offering flights, hotels, rental cars and holidays worldwide. Search for travel deals.
© Adfero Ltd
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