Proceeding contribution from Sarah McCarthy-Fry (Labour) in the House of Commons on Wednesday, 8 July 2009. It occurred during Debate on bill on Finance Bill.
Finance Bill
Somewhere in my papers, I have the figure for the reduction in carbon that we expect as a result of the measures. If I cannot find it in time, I will write to the hon. Gentleman. We have increased rates for all lengths of flights, but it is right that the rates for those flying to the farthest destinations are higher. That point has, I think, been agreed by all hon. Members who spoke. Following consultation with stakeholders, the Government decided not to go ahead with a per-plane tax. Proceeding with the per-plane tax would have raised more revenue, but it was not the right decision at the time. The Government proposed a per-plane tax in a very different economic climate, before the global economic downturn had really begun and before agreement was reached to include aviation in the EU emissions trading scheme. The decision to reform APD rather than proceed with a per-plane tax was taken after considering the potential impacts on regional connectivity and on air freight and the knock-on effects on employment, as well as the need to ensure greater stability in tax policy in times of economic uncertainty and to avoid the disruption and costs associated with the transition to a new tax. I now have to hand the answer to the question of the hon. Member for Na h-Eileanan an Iar (Mr. MacNeil). We estimate that our reformed APD will deliver 0.6 MtCO2—million tonnes of carbon dioxide—by 2011-12.
Secondary information
- Type
- Proceeding contribution
- Reference
- 495 c1011
- Session
- 2008-09
- Chamber / Committee
- House of Commons chamber
- Subjects
- Aviation Bingo Air passenger duty Internet Powers Prosecutions Pensions Tax allowances Taxation VAT Revenue and Customs Caribbean Real estate investment trusts
- Legislation
- Finance Bill 2008-09
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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