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Tax based on aircraft weight

The UK Government is likely to introduce a tax on aircraft based on their weight, according to a report in Shippers Voice, suggesting that this could result in higher air freight rates. The Freight Transport Association, the UK transport group, has challenged the proposal pointing out that, if implemented, it would encourage movement of air-freight to continental airports to avoid the tax, a view shared by many British shippers of air-freight. Any unilat eral action by the UK would only push up the cost of UK air-freight. The FTA, therefore, wants air-freight to be excluded from any tax changes. There are several other important factors too. It is apparent that such a tax could depend on a number of factors such as distance flown and how a passenger airline distributes the costs for belly-load consignments. It is also not clear if the proposed tax will apply to both inbound and outbound cargoes.

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