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Fuel tax changes & VAT would wipe out need for new runways

Government figures show no new runways would be needed in Britain if aviation fuel was taxed at the same rate as motor vehicle fuel and air tickets were subject to VAT.

Ministers begin consulting this week on a range of taxes and other measures designed to reduce the airline industry’s impact on the environment.

But the industry says British airlines would be disadvantaged unless a fuel tax was imposed internationally.

A group of local authorities, advised by Peter Carter-Ruck, is expected to take court action against the government, claiming ministers have not examined all of the options for a new international airport seriously.

References: The Times 17/02/03 page 1-2, The Independent 17/02/03 page 6

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