Written Question: VAT on Flights

Lord Moylan: To ask His Majesty's Government what plans they have, if any, to impose VAT on domestic passenger air travel.

Parliamentary Secretary, HM Treasury (Lord Pitt-Watson): Domestic scheduled passenger flights are zero-rated for VAT purposes, meaning that VAT is not charged on passenger fares.

The Chancellor makes decisions on tax policy at fiscal events in the context of the overall public finances.