Baroness Jones of Moulsecoomb – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Baroness Jones of Moulsecoomb on 2016-02-08.

To ask Her Majesty’s Government what estimate they have made of how much revenue will be raised from Air Passenger Duty this financial year, and how much would need to be raised to compensate for the loss of fuel tax and VAT on air fares.

Lord O’Neill of Gatley

The government expects APD to raise £3.1 billion over the financial year 2015-16.

In accordance with the long standing 1944 Chicago Convention, its bilateral Air Service Agreements and EU law, the UK does not tax aviation fuel or charge VAT on air fares. Consequently, the government does not consider this lost revenue and no such estimates have been made.