HMT launches consultation on aviation tax reform

Released 23 March 2021

HM Treasury (HMT) has launched a consultation on reforms to Air Passenger Duty (APD).

The consultation will review the case for amending the APD treatment of domestic flights and for increasing the number of international distance bands.

In particular, it will examine the Government’s current approach to taxing the aviation sector, via APD, and seek views on the Government’s initial policy position that in order to support Union and domestic connectivity the effective rate of APD on domestic flights should be reduced and the potential options through which this could be achieved. It also seeks views on a potential increase to the number of distance bands, in order to align the tax more closely with our environmental objectives.

Finally, the consultation sets out the factual position regarding the devolution of APD in Scotland, Wales and Northern Ireland and the government’s initial position on a potential Frequent Flyer Levy.

The consultation runs until 14 June 2021.

View the consultation document.

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