Airport slam Government plane tax plans
25.04.08
Newcastle Airport is calling for a wholesale rethink of the Government plans to introduce a 'per plane' tax on aviation. It claims plans to bring in a new aviation tax next year pose the biggest threat yet to its business and it has written to ministers stressing the move could hit passenger numbers and future expansion plans.
The Government is proposing to change the current per passenger tax (air passenger duty) to a per plane tax linked to aircraft weight and distance of flight from November 2009. It says that this is a better way of reflecting the environmental impact of air travel. However, the plans have received much criticism, including from an MP.
Graeme Mason, head of planning at Newcastle Airport, said: ‘Our problem with this is that it is only going to apply to aircraft taking off from the UK, so there is an immediate advantage to overseas airlines and airports. It is also going to hit demand very heavily and the impact on air fares is going to be much greater.'
'In a region like the North East, where we have worked very hard over a number of years to bring in new air services, we think that might impact on progress and actually set us back a few years.’ He said it would be better to base tax on aircraft emissions.
But in a statement, a Treasury spokesman said: ‘The Government consultation on a per plane duty to replace the existing air passenger duty closed yesterday. No firm decisions have been made on the design of the duty. But it will be more in line with the environmental impacts of flights, including the distance travelled, and take account of any social or economic impacts including market distortions.’
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