Private jet passengers in Britain are currently paying significantly lower rates of tax for their flights compared to ordinary passengers taking domestic journeys. Despite being the most polluting flights, the wealthiest travellers are benefiting from outdated thresholds and loopholes in the tax system.
According to a new analysis by climate charity Possible, approximately 100,000 private jet flights depart from UK airports each year, with many of them paying little to no air passenger duty (APD). Even after the government’s planned increases to higher-rate APD next year, private jet passengers will still only pay £142 for a short-haul flight or £1,141 for a long-haul flight. This is a stark difference compared to the tens of thousands of pounds per hour that can be spent on chartering private aircraft.
Possible is calling for a significant increase in the tax rate for private jet flights, proposing a rate that is 30 times the current rate. They also suggest imposing fuel duty on private jet kerosene at a rate 10 times higher than what motorists pay for fuel at the pump. This would create a tax rate that is comparable to what an economy passenger pays as a proportion of their ticket cost.
Alethea Warrington, head of aviation at Possible, emphasized the need for fair taxation on private jet flights to address the environmental impact and inequality in the aviation industry. She stated that private jet passengers are currently paying minimal taxes while contributing to a significant amount of pollution on journeys that only the wealthiest individuals can afford.
The Possible proposal involves introducing a fair APD rate for different types of private jet flights, with rates ranging from £2,520 for Domestic and Band A journeys to £20,190 for Band C journeys. For example, a flight from London to Geneva would see the cost of a private jet journey increase significantly, with 25% of the ticket cost being APD and 30% being fuel duty, resulting in a total tax rate of 55%. In comparison, a lowest-cost economy flight on the same route incurs a reduced-rate APD with no fuel duty paid.
On a Band B flight from London Luton to Dubai, the cost of a private jet journey would rise from around £35,000 per passenger to £86,126 per passenger. This proposed increase in tax rates for private jet flights aims to address the disparity in taxation between private jet passengers and ordinary travellers, while also generating additional revenue for essential public services.
In the upcoming budget, the chancellor faces a decision on whether to tax the most polluting journeys taken by the wealthiest individuals or reduce funding for vital services. The implementation of fair tax rates on private jet flights could not only address environmental concerns but also contribute to addressing social and economic inequalities within the aviation industry.
