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To ask the Chancellor of the Exchequer
(1) what assessment he has made of the effect of an increase in the levels of air passenger duty on (a) businesses and (b) the economy;
(2) if he will assess the proposal by the British Chambers of Commerce that overall tax revenues from air passenger duty should be offset against revenues arising from the entry of aviation into the EU Emissions Trading Scheme in 2012.
The Government launched a consultation on air passenger duty at Budget. A large number of responses to the consultation were submitted, including the views of business. The Government will publish their response shortly.
Air passenger duty is fundamentally a revenue-raising duty which makes an important contribution to the public finances. In meeting their revenue requirements, the Government consider aviation taxes in the round.