Consultation on air passenger duty prompts call for tax changes
Government should ensure a ‘level playing field’ for tax across all modes of transport, with each paying tax relative to their environmental impact.
Rail Delivery Group Director General Andy Bagnall made the call following the Government’s announcement on March 10 that a consultation on reforming air passenger duty (APD), announced at the 2020 Budget, will be published in the spring.
He said that ensuring a level tax playing field would encourage people to make greener travel choices, such as taking the train, adding: “Funding to look at developing better rail links between England, Scotland and Wales rightly recognises the key role trains will play in a future decarbonised transport network.”
The announcement of the APD consultation was made at the same time as the unveiling of Network Rail Chairman Sir Peter Hendy
CBE’s interim report into transport connectivity (see main story), although the two are separate.
Secretary of State for Transport Grant Shapps told the House of Commons: “The consultation will include options to change the air passenger duty treatment for domestic flights, such as reintroducing a return-leg exemption or the creation of a new lower domestic rate.”
In his report, Hendy wrote that one of the concerns raised in his work was for better air links to England to and from Northern Ireland and northern Scotland. These include (but not exclusively) to and from London Heathrow for worldwide connections for passengers and freight, including the appropriate rate of Air Passenger Duty for journeys not realistic by rail.
The report states: “Air and ferry connections and good airport and port facilities are crucial. Air corridors to Northern Ireland were raised by all stakeholders and the issue of Air Passenger Duty and its imposition on both legs of domestic flights was widely raised as an economic barrier, particularly
in Scotland and Northern Ireland.”
Hendy wrote that a passenger travelling from LondonEdinburgh by air would result in 144kg of greenhouse gas emissions, while by train it would be 29kg. Using a car would result in 129kg, although that could vary depending on the number of people in the vehicle, what kind of car it was, and how the car was being driven.
Fuel duty freeze - pages
14-15.