Next steps for the UK’s Air Passenger Duty

June 24, 2021

This is Transport & Environment's response to the questions posed by the UK Government's consultation on aviation tax reform. The response highlights our concerns around the UK government's proposals to decrease tax levels for domestic flights. It further highlights the fact that the aviation sector is undertaxed: it does not 'pay its way'. VAT is not applied to airline tickets, nor is there any tax on jet fuel. This is the direct opposite of the 'polluter pays principle'.

T&E also recommends that international air passenger duty (APD) is explicitly reformed along environmental lines, by applying a simple pence-per-kilometer rate. This would make APD directly proportional to distance flown and class of seat, thereby more accurately reflecting the actual emissions caused by an individual.

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