Here’s a suggestion for our sandal wearing bearded greenie tree huggers.
We know how much the government likes to tax petrol for driving within the UK. And the Chancellor has also just admitted that Air Passenger Duty (APD) is just a revenue raising measure.
So, what about the pollution caused by rental cars? A road trip across the U.S. adds on a significant amount of extra emmissions on top of the flight over there. Should the government be taxing that too?
Outrageous? Surely, the responsibility to tax motoring is down to the government in which the car is being driven, and is no concern of the British government? Yet, this is exactly the line that the government has taken on long haul flights – as long as the booking originates in the UK, it can be taxed by HMRC, even if the long haul sector of the journey starts from another country, such as France or Germany.This leads to some people starting their journey at a foreign airport, whereas others make two separate booking to avoid the long-haul fee. We have already seen the rate of APd reduced on long haul flights from Belfast, as too many people were leaking to Dublin, where the flights tax is just €3, regardless of distance.
As airlines are increasingly thrusting car hire options in the faces of travellers who have no intention of taking them, should they not be taxed aswell?
Of course, this measure will never happen, but it does highlight the fallacy of a government trying to reach too far outside its borders to tax an activity that is inherently international.