Take VAT stupidity

Another bunch of numpties appears:

“It is simply unfair that aviation pays no VAT. Why should one of the dirtiest and noisiest industries in the world get away scot-free when ordinary people are charged VAT on basic necessities like toilet rolls?”

Oooh, I can answer that question.

“VAT Air travel, like all UK public transport modes is zero-rated for VAT.”

http://www.bata.uk.com/Web/Sustainability.aspx

So you will, of course, be campaigning for VAT on train and bus transport as well?

11 comments on “Take VAT stupidity

  1. VAT is the dumbest tax of all and shouldn’t apply to anything. If you want to tax airlines more, the way forward is to auction off the landing/take off slots. You could scrap corporation tax and PAYE for airlines, and the value of the slots would go up to exactly balance the value of the tax cuts.

  2. Anyone who says that flight travel is not taxed enough is either a complete fool or lying

    Also, this way that they have of describing who pays the VAT is interesting… when it’s about toilet paper then it’s the ordinary people paying it and not the producers / distributor whereas when it’s about flight tickets it’s the bad bad companies not paying it.

  3. This is a useful pressure group in one way; membership of it identifies someone as a complete idiot, to be avoided at all costs.

  4. I have to pay fuel duty and VAT on the price of fuel plus fuel duty (therby paying tax on a tax), so why shouldn’t the proles pay VAT on bus and train fares.

    Tim adds: BTW, full marks for the internet persona. I’ve also seen a Bluebottle around, but not yet a Minnie Crun.

  5. Again Tim you say exactly what I’m thinking.

    Too many half arguments, and shot down when you start to question things.

    Is this what we’ve been reduced to as a defence against the condems? If this is our best form of protest we can muster, then I see the next gen election going to the Tories & lib Dems again.

  6. Last time I flew to the UK the fare was $1200, with $500 in taxes on top. So I fail to see how I am being taxed too little.

  7. If you look at the “cost” of CO2 as defined by the Strern Report, it was estimated at £80/tonne.

    The current green taxes already cover this. So anything further at this point is simply cash collection, and I think proves that the green “movement” is just bullshit for tax raising purposes….

  8. I’m a little at a loss to understand why airline customers would actually end up paying more tax. Surely, with the VAT levied on European based airlines at least, the input is set against the output so, as the airlines are currently net payers of VAT, the end result is zero.

    Anyone explain?

  9. Last time I flew to the UK the fare was $1200, with $500 in taxes on top.

    Are you sure you’re not counting the fuel surcharge and airport handling fees (ie “part of the airline’s cost base that should be included in the fare”) as “tax” here?

    APD for a long-haul economy flight under 6000 miles (e.g. LHR-LAX) is GBP75 for the ex-UK flight only, and US tax applied on the ex-US flight is lower still. If you managed to find a premium/business flight (where APD=GBP150) for $1200 then good on you; can I have the number of your travel agent?

    My next long-haul flight, from Australia to the UK in economy, involves tax of $210 on a $2150 total fare (ie $1940 pre-tax), which strikes me as non-outrageous. It also involves $300 of “airport” and “fuel” surcharges, or “the costs of running an airline”, as they’re also known…

    Johnnydub: no, you’re missing the point here. Almost everything else that’s sold in the EU is VAT-able. The current regime is effectively a subsidy to aviation, by making it relatively more attractive to fly somewhere (not subject to VAT) than hire a car (subject to VAT), fill it with petrol (subject to VAT) and drive there. That’s true even before we start thinking about Pigouvian carbon taxes.

    BlokeinSpain: most of an airline’s costs (planes, kerosene and labour) are VAT-exempt. So although they’d be able to offset the cost of trolleys, microwave dinners and contract cleaning services, that would be a very small proportion of total fare income.

    Tim adds: Yes, but. No public transport in the EU pays VAT. Airlines are public transport. So, if airlines/airplanes have to pay VAT so should trains and buses.

  10. “That’s true even before we start thinking about Pigouvian carbon taxes.”

    Well let’s get to a level playing field on transport then, and take away APD and fuel duty, add VAT, and put on a Stern Tax, and see where that takes us.

    Oh, and we’d need to charge for roads (the price of airline infrastructure being included in the “fees”).

  11. Tim adds: Yes, but. No public transport in the EU pays VAT. Airlines are public transport. So, if airlines/airplanes have to pay VAT so should trains and buses.

    Depends on why we exempt public transport from VAT, doesn’t it?

    I’m fairly sure that buses and trains are exempted to encourage people to use them as an alternative to cars to cut pollution [long-distance] and congestion [metro]; whereas planes, which don’t really do either, are exempted purely because that’s what we agreed would happen in 1944.

Leave a Reply

Name and email are required. Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.