To ask the Chancellor of the Exchequer whether the Airport Passenger Tax is designed to produce environmental benefits. [R]
Air passenger duty (APD) was introduced in 1994 as a measure whose principal purpose was to raise revenue from the aviation industry but with the anticipation that there would be environmental benefits through its effect on air traffic volumes.
The Government are currently discussing with stakeholders the most effective economic instruments to ensure the aviation industry takes account of, and where appropriate reduces, its contribution to global warming and local air and noise pollution. A Government discussion document, Aviation and the Environment: using economic instruments, was published in March 2003.