US Unhappy With UK Air Tax Plan
2008-06-11
The Daily Telegraph reports US embassy officials in London are critical of a government plan to tax airlines on each plane rather than each passenger.
Under new rule, set to come into play in November, the UK government claims its new tax plan will help cut emissions, by discouraging airlines to fly planes that are half empty.
Such a tax, while generating extra revenue, would breach international laws.
The UK Treasury has denied it is proposing any tax, but the US embassy has expressed its deep concern in a letter to the UK government.
The letter purportedly lists a number of international agreements it says would be breached by the new tax, and adds that it can see no evidence of any environmental benefit.
Airlines estimate that under the proposed tax change, the tax payable on a flight from the UK to the US could more than double to £100 per person.
