A new tax proposal on jet fuel being touted by campaigners could add nearly £6 billion to government coffers.
Thinktank Transport and Environment (T&E) UK suggests that a ‘fair’ tax imposed on jet fuel could generate between £400 million and £5.9 billion.
T&E UK wants the Chancellor to impose a fuel duty and suggests an initial rate of 9p per litre.
It should be tied to incremental increases similar those for road fuels by 2030.
It is time for the aviation industry to pay its fair share, the group says.
“With a £22bn black hole staring the country in the face, the chancellor needs to pursue any and all avenues to raise funds. The baffling lack of meaningful taxation of the aviation industry is a slap in the face of drivers, farmers and our ailing rail system,” said T&E UK policy manager, Matt Finch.
“For the sake of the economy and the environment, it’s time to end the unfair anomaly that allows the aviation sector to pollute with impunity while not paying any tax.”
Tim Alderslade, CEO of Airlines UK argues the industry pays its fair share.
“The aviation industry contributed £3.85bn last year through air passenger duty. The phasing out of UK ETS free allowances for airlines is due to raise between £1.6bn and £4.1bn between 2026 and 2033.”
“The sector is fully committed to net zero emissions by 2050. The UK is in prime position with government and industry working together to lead the transition to a net zero future without hurting passengers.”
