Aviation

Counting the Costs

The effect of the tax breaks to the aviation industry is equivalent to every man, woman and child in the country donating an average £182.45 to the aviation industry every year. No tax is paid on aviation fuel, no VAT is paid on the purchase of planes or any of the components of air travel. The value of this exemption, after deduction of £1 billion Air passenger duty, was 37.5 billion in 2000.

The aviation industry does not pay tax for the environmental and social costs it imposes on society by causing noise pollution, air pollution, transport infrastructure congestion, habitat loss and global warming.

The government's proposals to triple air traffic in the next 30 years poses a significant threat to the countryside both locally and nationally. Associated with any airport expansion will be the infrastructure necessary to serve it:-

•  Bigger roads,

•  rail links

•  car parks for passengers and employees and

•  additional housing for new employees.

In February 2003, the Department for Transport re-ran its computer-forecasting model, now taxing aviation fuel at the same rate as petrol, and with VAT on aviation products. The results? No new runways would be needed anywhere in the UK to 2030!