A leading environmental lobby group called on the UK government to impose a kerosene tax on flying as the COP27 climate conference got under way in Egypt.
Transport & Environment issued a study suggesting taxing aviation fuel at the same rate as UK motorists pay in fuel duty on petrol and diesel would raise £6.7 billion a year – roughly double what is raised in APD.
The group pointed out airlines “have never paid a penny of duty on fuel at UK airports”.
It argued the revenue raised from a kerosene tax could be reinvested in aviation decarbonisation by spending on “accelerating the uptake of sustainable aviation fuel and development of zero-emission aircraft”.
Matt Finch, UK policy manager at Transport & Environment, argued: “The UK is effectively a tax haven for airlines. Any British motorist paid more fuel duty last time they filled up than British Airlines has ever paid.”