Sunday, February 19, 2006

Taking to the air - the subsidizing of air travel.



There is talk again within the EU of looking into the tax exemption on airplane fuel as concerns over climate change hot up. While other forms of transport pay tax on fuel, airlines are exempt and are of course resisting any change in any way. See the following by the European Low Fares Airline Association; http://www.elfaa.com/documents/press%20release%20re%20aviation%20and%20ETS%20280905.pdf .

Airlines have always quoted job creation as a prime reason to keep their tax exemption status. Increasingly they are also asking whether the travelling public would be happy to forego cheap airfares that they currently enjoy. An effective defence! Environmental campaigners are however locking their sites on airlines as they see them as an increasing contributor to carbon emissions. Are they killjoys? After all, forcing higher airfares through tax changes will mean only the rich can afford the luxury to fly.

For a detailed study on the effect of subsidies on fuel emissions go to;
http://www.feasta.org/documents/energy/DHealyFossilFuelresearch.pdf

2 Comments:

At 11:27 pm, Blogger Keith Scott said...

The present situation is scandalous. It has been shown that aircraft travel has a far greater effect than any other form of transport in creating global warming yet it is the only transport that does not pay taxes on fuel.

Not only should it pay the same tax as any other form of transport but it should pay extra taxes to compensate for the damage caused to the environment.

It is good the EU is talking about it but why isn't it acting NOW?

 
At 11:33 pm, Anonymous Penny said...

While it remains cheaper to fly from London to Manchester than taking the train, folk will vote with their wallets. If there was tax on aviation fuel then only the very wealthy could travel. Answer? Subsidise non polluting travel. We need a Ken Livingstone for the UK, not just London. Yes I know he has his faults, but travelling in London has improved greatly since he came on scene!

 

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