Experts warn against green air taxes

Recent proposals from the Conservative Party for extra taxes to be imposed on domestic UK flights have been criticised by business and airline representatives.

The party recently recommended in a policy report that such taxes would help to curb carbon emissions, but Michael Roberts of the Confederation of British Industry told BBC Radio 4's World at One programme that this move may have wider economic repercussions.

He stated that while more ways in which the transport industry can reduce their carbon output need to be found, the government should also consider issues such as electricity generation.

Meanwhile, bmi chief executive Nigel Turner claimed that putting financial restrictions on domestic flights may damage local economies if the ability to offer connections to international destinations is impaired, as well as potentially add to passengers' cost burden.

"Short haul air travel is already taxed at a disproportionate rate thanks to air passenger duty, the tax originally sold to the British public as one which would be used to offset the environmental impact of air travel," he explained.

"Domestic travel is doubly hit, because passengers pay the tax going in both directions."

The Conservative report, Blueprint for a Green Economy, was released yesterday (September 13th) and took 18 months to compile.

Posted by Clare, 14 September 2007 13:21

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• BMI