Food for thought over aviation fuel tax
UK: Campaigners say “proper” taxes would restrict growth of industry
The problem of how to cope with a fact-expanding aviation industry could be solved if aviation fuel was taxed at the same rate as motor fuel, according to reports.
As reported by News From Abroad, the Government is presently trying to decide how to cope with massive predicted increases in air travel, with proposals including the building of several new runways at airports around the south east of the country.
However, Green pressure groups have told the Government that air fares are being kept artificially low because of the aviation industry is exempt from fuel duty and VAT. Previous Government estimates guessed that without extra tax, air fares would fall by one per cent a year.
However, new figures submitted by the Council for the Protection of Rural England and Friends of the Earth state that if fuel tax were 46p per litre and fares were subject to VAT, numbers would rise so slowly that existing runways would have plenty of spare capacity for years to come.
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