Frequent Flyer Levy: March 2023

Dear Constituent,

Thank you for contacting me about a Frequent Flyer Levy.

As part of a consultation on aviation tax reform between March and June 2021, the Government sought views on whether a frequent flyer levy could replace Air Passenger Duty (APD) as the principal tax on the aviation sector.

In the responses received to the consultation, a wide range of views on a frequent flyer levy were expressed. Some stakeholders, including those from the aviation industry, strongly opposed any suggestion that APD should be replaced with a frequent flyer levy, on the grounds that it would be significantly more difficult to administer. Conversely, environmental stakeholders supported the introduction of a frequent flyer levy, considering that the benefits of such a levy outweighed any potential administrative complexity.

Following the consultation, having considered all views received carefully, the Government published a response which outlined that it was minded to retain APD as the principal tax on the aviation sector, noting in particular concerns about the possible administrative complexity and data processing, handling and privacy of a frequent flyer levy.

You can read more about the consultation here: www.gov.uk/government/consultations/consultation-on-aviation-tax-reform

Thank you again for taking the time to contact me.

Sincerely,

Richard