HC Deb 20 November 2003 vol 413 cc1323-4W
Mr. Dalyell

To ask the Chancellor of the Exchequer what his estimate is of the cost of not taxing aviation kerosene in financial year 2002–03. [140200]

John Healey

Aviation turbine fuel (AVTUR), is a heavy hydrocarbon oil used in virtually all aircraft on scheduled flights within the UK, and the majority of international commercial flights.

Although AVTUR is not currently taxed, the UK recognises that there is a case for taxing fuel used in international aviation and supports action through the International Civil Aviation Organisation to remove the current worldwide exemption.

Assuming no decrease in demand from a higher fuel price, levying duty on 2002–03 quantities of aviation turbine fuel would have raised the following amounts of revenue:

£ billion
Duty levied Revenue raised
If the rebated kerosene duty rate were levied 0.4
If the ULSD duty rate were levied 5.8
If the heavy diesel duty rate were levied 6.6