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Environmental levies

Discussion in 'Personal' started by oldsomeman, Jun 20, 2019.

  1. oldsomeman

    oldsomeman Star commenter

    I am puzzled and confused as to what they actually in reality do, and show how this money is used?
    For example some members of the EU want to tax aviation fuel and seats as an environmental levy, but where does it go to and what is it really used for, other than a tax grab or an attempt to change consumer choices in the case of the EU ,ie to make trains and alternative modes of travel more competitive and so make users pick them rather than the plane.
    Is there some giant bank where this money is stored and used in some magical way to offset climate change?
    border_walker likes this.
  2. lanokia

    lanokia Star commenter

    Interesting question... petrol tax isn't ringfenced for either road or environmental spending to my knowledge. But that is a tax that is supposed to discourage driving [and a roaring job it's doing as well... 100% successful there].

    Personally... I'd like it if petrol tax was funnelled into subsidising electric car purchases. Or funnelled into establishing the electrical infrastructure to support electric car use.

    Of course new taxes on aviation would discourage poorer people travelling abroad, the costs being passed on to consumers in the price of tickets. But then they'd travel by ferry or go on domestic holidays which might help seaside communities in the UK.
  3. Mangleworzle

    Mangleworzle Star commenter

    I presume most taxes unless very specific go into the general tax pot. I seem to remember aviation fuel isn't taxed as it is almost by definition used internationally and no country wants to risk losing the air traffic by charging more for it than the one next door, so it has to be done in agreement with a least a few countries so as not to end up as a money loser. It's supposed to one of the reasons that flights are so cheap these days, though I'm not sure what % of the ticket price goes on fuel.

    Tax on petrol and diesel are of note as you pay for the fuel, then the fuel tax and then VAT on the lot, so you're paying tax on the tax!
  4. lanokia

    lanokia Star commenter

    Maybe some sort of international community of nations agreeing to co-ordinate their tax policies?

    No.. crazy talk... never work...
  5. primarycat

    primarycat Star commenter

    Aviation taxes are different from country to country. Much lower out of USA than out of here, for example. So raising them would hit one leg of the journey, not both in some cases.
  6. oldsomeman

    oldsomeman Star commenter

    The UK charges for aviation fuel but it seems the EU as a whole doesn't. Which might explain why internal flights are cheaper in the EU
    What puzzles me is what environmental levy or scheme doe this go to I understand charging to offset environmental damage..but how, where and when?.
  7. primarycat

    primarycat Star commenter

    I've asked Mr aviation boy PC who has told me that the biggest proportion of fare cost is the fuel. Then it's the staff wages, then physical aircraft itself. However, cargo carried on flights offsets a lot of this. Without cargo it'd be a lot more expensive.
    lanokia and Mangleworzle like this.
  8. Scintillant

    Scintillant Star commenter

    Aviation will be taxed to reduce fossil fuel consumption. It has to happen. This will probably be at an increasing rate as personal usage increases.
    lanokia likes this.
  9. lanokia

    lanokia Star commenter

    Has to be hoped that "having children" will also get a similar tax hike... reflecting the carbon footfall.
    border_walker likes this.
  10. Mangleworzle

    Mangleworzle Star commenter

  11. racroesus

    racroesus Star commenter

    WTO could agree tariffs.

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