Newcastle Airport bosses label new tax proposals as damaging
Posted on August 11th, 2010
Newcastle Airport bosses have reacted to proposals for new taxes from Brussels calling them damaging. Those at the EU have proposed that direct taxes could be levied on member states in return for lowering the fixed contribution they have to make to pay to Brussels. This could effect taxes on aviation, financial transactions and carbon emission permits. But Newcastle Airport chiefs have expressed that a new EU aviation tax would hit regional air services.
The coalition has also suggested replacing Air Passenger Duty APD with a per plane tax, despite warnings that will prove highly damaging.
The airport’s planning and corporate affairs director, Graeme Mason, has said: “We are confident that the UK Government would veto any move to tax aviation at an EU level.
“A further level of taxation would be unacceptable and particularly damaging to regional air services. We believe that the EU Commission’s Trading Scheme is the most appropriate way to manage the carbon impact of aviation.
“Our view is that national taxes such as Air Passenger Duty, or the proposed per plane tax, should be phased out once the ETS comes in.”
UK Treasury Minister Lord Sassoon has said the British Government is opposed to direct taxes financing the EU budget.
“The UK believes that taxation is a matter for member states to determine at a national level and would have a veto over any plans for such taxes.”
British Airways boss, Willie Walsh has also had a meeting with Transport Secretary Philip Hammond and warned that a new “per plane” tax would hit regional connectivity.
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Tags: aviation tax, newcastle airport
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