Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the Answer of 26 April 2022 to Question 157540 on Aviation: Taxation, ​what assessment he ​has made of the potential merits of tolerating the potential administrative complexity of a frequent flyer levy to facilitate the move towards net zero.

As part of a consultation on aviation tax reform between March and June 2021, the Government sought views on whether a frequent flyer levy could replace APD as the principal tax on the aviation sector.

In the responses received to the consultation, the Government received a wide range of views on a frequent flyer levy. Some stakeholders, including those from the aviation industry, strongly opposed any suggestion that APD should be replaced with a frequent flyer levy, on the grounds that it would be significantly more difficult to administer. Conversely, environmental stakeholders supported the introduction of a frequent flyer levy, considering that the benefits of such a levy outweighed any potential administrative complexity.

Following the consultation, having considered all views received carefully, the Government published a response which outlined that it was minded to retain APD as the principal tax on the aviation sector, noting in particular concerns about the possible administrative complexity and data processing, handling and privacy of a frequent flyer levy.

Full details of the consultation and the Government’s response can be found at: www.gov.uk/government/consultations/consultation-on-aviation-tax-reform