PPRuNe Forums - View Single Post - Jet A1 - a strange world come to think of it
Old 1st Feb 2007, 07:37
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Fuji Abound
 
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Ah! So FA need have no worries about the hike in the price of diesel then! People will continue to buy them because they are better, not because the fuel's cheaper. (where's the emoticon that says I'm deliberately stirring?)

You have a good point.

However, surely one of the purposes of tax incentives is to encourage a particular trend or development within the community because it is perceived to be good for the community.

In this case the lack of duty on Jet A1 was not introduced as an incentive, it has always been that way. It would seem to be more the case that any form of fuel eventually becomes a tax target.

However, the lack of duty did encourage the development of these engines, notwithstanding that they have other advantages.

The Government has a track record of taxing any form of fuel that becomes popular so the tax hike should not come as a surprise.

Should legislative changes be introduced in the way they have resulting in an "overnight" increase in the price which has no commercial basis - that I doubt. I suppose our Government has resisted these changes - if their heart is really in it?
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