PPRuNe Forums - View Single Post - Time to charge VAT on new aircraft
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Old 24th Nov 2011, 20:35
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jabird
 
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racedo and Lg..

These are exactly the same answers I have tried putting to the likes of FoE, Green Party etc, and they either go quiet, ignore you, or say they aren't an accountant if you are lucky.

I was not talking about private aircraft, whose users afaik pay VAT and duty on avgas just like car drivers?

Their bone of contention is that the aviation industry is 'subsidised' to the tune of £10bn per year, but again, when you ask for a breakdown of this figure, it falls apart.

Much of the claim hinges on there being no VAT on fuel (they've never heard of the Chicago Convention, they don't get the concept that it is a cross-border business), and that passengers get 'subsidised' duty free (have they shopped in airports lately - obviously not, all those eco-tourism types take the train to Peru, don't they).

The concept that a product or service not being subject to VAT is still not subsidised is alien to them - we'll stay quiet about food being doubly subsidised via the CAP and not being levied VAT then!
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