News: British Airways clarify policy on flight tax
Flights > News > # 239 (19/03/2005)
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Following on from Rod Eddington's statement on the need for the industry to make its position clearer on climate change, British Airways gave the following statement to Flightmapping:
"We support emissions trading not additional taxes as the most effective way of limiting aviation's impact on climate change. Emissions trading provides an incentive for companies to reduce their carbon dioxide emissions - additional taxes do not. There is no justification for higher taxes on aviation in the UK, passengers already pay more than £800 million per annum in Air Passenger Duty.
The suggestion of a fuel tax is unjustified. It would unfairly penalise the airline industry compared to the rail industry which receives public subsidies of £2 billion each year. In addition, tax comparisons between aviation and road transport are inappropriate as part of the proceeds from road tax are to pay for the cost of providing and maintaining the road infrastructure. Aviation pays its infrastructure costs in full through airport and ATC charges.
Aviation is like any form of public transport in the UK and is not subject to VAT. Suggestions that VAT on aviation would yield £2.5 billion are incorrect since many business travellers would be able to reclaim the VAT that they pay."
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