Question - Tax on aviation fuel!

[Grob Driver]

Very quick question… Is aviation fuel taxed? There’s a bit of a debate going on in the office here!!

Thanks

Grob Driver

[rustle]

Is aviation fuel taxed?

Does a bear **** in the woods? :D

Avgas (100LL) is taxed at about 4 billion% then VAT is added for luck.

Jet-A1 is taxed slightly less.

Tell your colleagues that none of the money is ever put back into aviation though :(

[Kolibear]

You can also tell them that neither Red Diesel for farm use nor Marine Diesel for boats in taxed (or is taxed less) and you can cheat and use them in your car.

Put Avgas in your car & you'd be buying a new catayst quicker than you can say 'Bu66er - I've just blown the cat!'

Fair - I think not.

[foghorn]

AVGAS is dutiable at 27.34p per litre, and then the whole price is taxed at 17.5% VAT (note the tax on a tax here!).

AVTUR / JET-A1 isn't dutiable, however end users pay VAT, of course.

As as been said, Agricultural and Marine diesel has negligible duty - just a couple of pence per litre.

For comparison Low Sulphur Unleaded MOGAS is dutiable at over 40p per litre, plus VAT. However the pump price is cheaper than AVGAS, since AVGAS is a specialist product and the oil companies make a huge margin on it.

Also note that drivers get free roads for their MOGAS duty - light aviation pilots get diddly squat for their AVGAS duty - it could be used to fund LARS, but that is paid for by the airlines not the government!

Taxing AVTUR without global co-ordination would just create price differentials between countries that would lead to more tankering by aircraft, which causes more fuel to be burnt than is necessary, which causes more environmental damage than before!

[distaff_beancounter]

Just a clarification on the question of VAT, in the UK.

AvGas carries 17.5%, regardless of the quantity puchased.

AvTur/JetA1 also carries 17.5% VAT, except for "a supply of not more than 2300 litres of kerosene". (AvTur/JetA1 are covered by the same Customs & Excise schedule as the generic fuel named "kerosene"). A supply of <2300 litres only carries VAT at 5%.

C & E regard a supply for this purpose as comprising all deliveries to the same customer at the same site on the same day. So big users would pay 17.5%, but are likely to be VAT registered & so able to reclaim the VAT paid.

For the private owner of a turbined engined helicopter or fixed-wing, or one of the new generation of AvTur piston-engined A/c, who is not VAT registered, this is a useful saving.

That is, of course, until dear Gordan Brown changes the rules, again :(