The below Parliamentary question was asked by Jim Fitzpatrick on 2016-01-28.
To ask Mr Chancellor of the Exchequer, what discussions his Department has had with the European Commission since the publication of the EU Aviation Strategy in December 2015; what assessment he has made of the effect of taxes and levies applied by member states on connectivity and competitiveness; what his Department’s response to that strategy’s conclusion on the effects of such taxes and levies conclusion is; and if he will make a statement.
Mr David Gauke
HM Treasury takes note of the European Commission’s 2015 Aviation Strategy.
The UK has the third largest aviation network in the world and a strongly performing aviation sector – passenger numbers grew 4% in 2014 compared to 2013 and are expected to show similar growth for 2015.
In the absence of any taxation of international aviation fuel and no VAT on international or domestic flights, the Government levies air passenger duty (APD) on the carriage of passengers from UK airports. APD ensures that the aviation sector contributes its fair share in taxation towards reducing the deficit.
However, like all taxes, APD is kept under review with any changes announced at fiscal events.