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Osborne postpones action on per-plane tax till the autumn

25th June, 2010

The UK government has postponed a decision on the new per-plane tax.

George Osborne, the Chancellor of the Exchequer, said in his emergency budget “The government will report back in the autumn on its proposal to impose a per plane tax as opposed to a per passenger tax to contribute towards a reduction in carbon emissions.”

AEF understands the delay is because there had not been time to work out the details. But there are concerns that this could be an excuse to delay or even go back on the coalition commitment. At the very least, it gives the aviation industry more time to continue its campaign against tax increases.

The coalition government has also not yet made clear whether the planned increase in APD, due on November, will go ahead. If the change to a per-plane duty does not go ahead in the autumn, it is vital that the increases in APD originally planned do go ahead. Given all the cuts and tax rises being imposed elsewhere, it would be inexcusable not to start removing the £10 billion pa tax advantages that the aviation currently enjoys.

See also ‘the story so far’.