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Air Passenger Duty

Treasury written question – answered on 19th October 2012.

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Photo of Henry Smith Henry Smith Conservative, Crawley

To ask the Chancellor of the Exchequer

(1) what research his Department has conducted to assess the impact of air passenger duty on the economy;

(2) if he will consider the All Party Parliamentary Group on Aviation's inquiry into Aviation policy and air passenger duty and the recommendation that the wider effect of air passenger duty on the UK economy be reviewed.

Photo of Sajid Javid Sajid Javid The Economic Secretary to the Treasury

The Government undertook an extensive consultation on air passenger duty last year. The consultation gathered views and evidence from stakeholders, which included views on the impact of APD. Over 500 responses were received from a wide range of stakeholders. The Government published their response to the consultation, including a summary of views received, on 6 December 2011.

The Government have noted the recommendations of the All Party Parliamentary Group on Aviation inquiry. Given that we recently completed a comprehensive consultation on the subject, we have no plans for further review. However, we will continue to monitor the situation.

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John Byng
Posted on 25 Oct 2012 9:24 pm (Report this annotation)

It is to be hoped that the government recognise that APD has a beneficial effect on the UK economy. It is a very efficient tax to collect and helps level the playing field with other industries.

If aviation were to pay its fair share then APD would need to be trebled. The burden of allowing aviation to be free of fuel duty and of VAT falls on other industries and hard working tax payers.