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G-KEST
7th Aug 2007, 22:08
A response to the petition has now been published. Little has changed and we must continue to encourage our representative bodies like PFA, AOPA, BMAA, BHAB, HCofGB, HAA, BGA and BRA along with BBGA to make progress with the government towards a common sense position. Otherwise our fuel costs are going to rise enormously.

Cheers, (or possibly tears)

Trapper 69
:mad::mad::mad::mad:
_______________________________________________
Aviation fuel tax - epetition reply from the PM dated 7 August 2007

We received a petition asking:

"We the undersigned petition the Prime Minister to prevail on the Treasury not to impose additional taxes on aviation fuels beyond the few pence per litre required by the EC. The opportunity to increase tax follows from the Commission's recent refusal of an application to allow the continuance of a lower tax on avgas than on car petrol."

Details of Petition:

"Twenty years ago aviation pressure groups successfully petitioned the Treasury for a reduction in avgas tax, because avgas, being produced in much smaller quantities than car petrol, was much more expensive. Tax was set at half that of leaded motor fuel. The EC minima for tax on avgas is higher than the UK level. If the tax is raised to the specified minimum, avgas and Jet A1 will rise by about two pence per litre, but if the Treasury chooses to bring tax into line with car petrol, the price could rise by as much as 29 pence per litre, which would have a devastating result on General Aviation. General Aviation trains airline pilots, is a major employer and an important element in the economy and in the transport infrastructure. We urge that the Prime Minister requests a review of this by his Ministerial colleagues."

Read the petition
Petitions home page
Read the Government's response

The Government understands that many people will be disappointed by the European Commission's decision not to allow the renewal of the derogation from the Energy Products Directive (EPD) which allowed a reduced rate of excise duty to be charged on aviation gasoline (Avgas), and for Avtur (Jet AI) used for private pleasure flying to be exempt from duty.

Under the terms of the EPD, Member States are permitted to set their own tax rates as long as they respect the minimum rates agreed and laid down in that Directive. However, once a Member State has set its tax rates it cannot introduce different rates for different purposes, except in a few very specific circumstances and for particular uses, or where product quality differs.

Officials are in the process of discussing with various representative organisations ways of implementing the new regime that will both minimise the impact, and ensure that any additional compliance burden is as small as possible. Consultation will be carried out shortly by HM Revenue and Customs seeking views on options for implementation.

The Government has already announced that there will be no changes until 1 November 2008. This timetable will allow the many issues to be considered properly before decisions are made, whilst ensuring that, once decisions are announced, the general aviation sector will have an appropriate period of time to adapt before legislation comes into force.

flybymike
7th Aug 2007, 22:36
I do wish theywouldn't keep on sneaking in the use of the phrase" private pleasureflying" which suggests that GA is only about a bunch of playboys playing with their toys..:rolleyes:

Arclite01
8th Aug 2007, 00:51
'No changes until November 2008' - i.e. after we may be gone from office and so will be able to distance ourselves from any fallout there may be.................so we don't really care you see.................

:\

Arc

WorkingHard
8th Aug 2007, 06:52
"rate of excise duty to be charged on aviation gasoline (Avgas), and for Avtur (Jet AI) used for private pleasure flying "
Question for those learned gentlemen amongst us then, does this mean all other GA flying may benefit? For example where it is part of one's business.

G-KEST
8th Aug 2007, 10:09
Some good news for a change.

The BBGA has been making efforts with other organisations to avoid the imposition of a 30p per litre increase in fuel duty following the European Commission decision late last year to end the derogation the UK had previously enjoyed from the EU Energy Directive.

Her Majesties Revenue and Customs has now issued a consultation on the matter and in general the preferred options are in line with the lobbying activity. The position is, for AVGAS, the establishment of a separate line item in the budget for AVGAS separate from leaded motor fuel, which allows duty to be set at the EU minimum rather than at the same rate as for motor fuel. This would result in an approximate increase in duty of 2p per litre rather than 30p.

For JET A1 the situation is a little more complicated but basically the use of JET A1 for “private pleasure” use would require an “honesty declaration” by the user. The description of “private pleasure” may need some work but it already excludes all corporate aviation and flight training.

This is only the consultation so this result is not yet confirmed but I hope this paves the way for a significant victory for BBGA and the other representative bodies involved in avoiding devastating increases in duty for our industry.
Comments you have might have on the consultation should be sent to your own representative association as soon as possible in order to formulate a consolidated industry response.

The consultation can be found at -

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ConsultationDocuments&propertyType=document&columns=1&id=HMCE_PROD1_027787

It seems that the response from the PM's office was less than positive. At least in my own opinion. Now it is up to all of us to support the efforts of our associations.

Cheers,

Trapper 69
:ok:

Genghis the Engineer
8th Aug 2007, 11:37
I do wish theywouldn't keep on sneaking in the use of the phrase" private pleasureflying" which suggests that GA is only about a bunch of playboys playing with their toys..

Surely the majority of airline flying is for "private and pleasure" purposes - at-least my last such flight was, I was going on holiday!

G

Captain Smithy
8th Aug 2007, 12:10
Re: the "Private and Pleasure purposes" thing. How is this defined and where is the line drawn?

For example, I am taking PPL lessons with future intentions of having a commercial career. Does that constitute my lessons being "Private and Pleasure"?

Or what about Clubs/Schools instructing. Is that "Private and Pleasure" too?

And business travelling... private yes, but not for pleasure.

I agree with flybymike, I detest the phrase "Private & Pleasure" being used to describe GA. Of course what do Westminister know, they know nothing, they just toe the line that Brussels draws for them. :mad: