07/08/2006

Government urged to raise air travel tax

The government should increase taxes on air travel and cars with high fuel consumption in order to help the environment, a committee of MPs has said.

The report by the House of Commons Environmental Audit Committee also called for the 70mph speed limit on motorways to be reduced or rigorously enforced in order to cut down on carbon dioxide emissions.

The report said that transport was the only area of the UK economy where carbon emissions have risen consistently since 1990, with emissions from air traffic doubling over that time.

It was "scandalous", the report said, that governments had failed to introduce higher aviation taxes or that no governments in the European Union charged VAT on international air tickets.

However, the MPs did welcome the introduction of variable car tax, meaning that the owners of the lowest-carbon cars pay no road tax, while owners of gas-guzzling 4x4s - dubbed 'Chelsea Tractors' - pay an increased rate of £210.

However, the report said that the measure should be extended, with the introduction of a top band of £1,800 with lower bands at £300 intervals down to the least-polluting cars which would be tax-free.

(KMcA/SP)

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