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Newcastle Airport chiefs blast new tax proposals

NEWCASTLE Airport chiefs have blasted what they call damaging proposals for new taxes imposed by Brussels.

NEWCASTLE Airport chiefs have blasted what they call damaging proposals for new taxes imposed by Brussels.

European Union chiefs have raised the prospect of levying direct taxes on member states in return for lowering the fixed contribution they have to make to pay to Brussels.

Taxes on aviation, financial transactions and carbon emission permits could all be on the table

But Newcastle Airport said a new EU aviation tax would hit regional air services.

The warning comes as The Journal’s A Tax Too Far campaign has highlighted the potential damage of hikes in Air Passenger Duty (APD) imposed by the UK Government.

The coalition has also suggested replacing APD with a per plane tax, despite warnings that will prove highly damaging.

Graeme Mason, the airport’s planning and corporate affairs director, said: “We are confident that the UK Government would veto any move to tax aviation at an EU level.

“A further level of taxation would be unacceptable and particularly damaging to regional air services. We believe that the EU Commission’s Trading Scheme is the most appropriate way to manage the carbon impact of aviation.

“Our view is that national taxes such as Air Passenger Duty, or the proposed per plane tax, should be phased out once the ETS comes in.’

UK Treasury Minister Lord Sassoon has said the British Government is opposed to direct taxes financing the EU budget.

“The UK believes that taxation is a matter for member states to determine at a national level and would have a veto over any plans for such taxes.”

The developments come after British Airways boss Willie Walsh used his first meeting with Transport Secretary Philip Hammond to warn the new “per plane” tax could hit regional connectivity.

 

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