UK think tank T&E proposes a new jet fuel tax to address a £22bn fiscal gap, potentially raising £400m-£5.9bn annually and increasing airfares.

The UK think tank Transport and Environment (T&E) proposes a new jet fuel tax to help address a £22 billion fiscal gap, potentially raising £400 million to £5.9 billion annually. The tax would start at 9p per litre next year and gradually increase to match road fuel duty by 2030. This could lead to higher airfares, as airlines might pass on costs to passengers. The aviation sector, which currently contributes significantly to public finances, is already committed to achieving net-zero emissions by 2050.

September 15, 2024
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