VAT should be imposed on all international air tickets from Britain and the rest of the European Union in an attempt to reduce greenhouse gases, a committee of MPs has said.

The 17.5 per cent increase in prices would trigger protests from airlines and passengers, but the all-party group maintains that it is a price worth paying to protect the environment.

The Environmental Audit Committee also wants Air Passenger Duty, which was frozen in the Budget for the fifth consecutive year, to rise from its average of £15. It proposes new taxes on flights within the EU, and a government levy on domestic flights for the first time.

The committee, which was set up to monitor the Government’s record on green policies, is braced for a hostile reaction; but it said that transport was the only sector for which carbon emissions were higher in 2004 than 1990, when the levels were last measured.

The committee also said that cars with large engines which produce the most carbon emissions should be more heavily taxed, with drivers of the worst polluters paying up to £1,800 a year car tax.

Drivers of gas-guzzling cars such as the 4 X 4 Toyota Land Cruiser Amazon currently pay less vehicle excise duty than owners of smaller cars producing less emissions.

Emissions from road transport were up by 10 per cent, but those from international flights from the UK rose by 111 per cent. Transport accounted for 33 per cent of carbon emissions in 2004, up from 27 per cent in 1990.

The figures from the committee confirm that aviation is the fastest-growing source of greenhouse gases, with flights within Europe on course to double by 2020 and triple by 2030.

The report states: “It is scandalous that governments around the world have failed to grasp the nettle of taxing aviation fuel. It is equally scandalous that no member state within the EU charges VAT on international air tickets. While this would require co-ordination across the EU, individual states are free to impose VAT on domestic tickets.

“The Government has the power to increase taxes on domestic flights: it should do so, and as soon as possible. It should further work to conclude bilateral agreements with European partners to levy additional taxes on flights between them. The Government has no excuse for not raising air passenger duty.

“Air passenger duty should be raised, so as to slow the growth of aviation and stabilise its absolute level of emissions.”

The committee said that ministers should join their European counterparts to develop additional taxes on EU flights that could be used to design more energy-efficient aircraft.

The Treasury said that it was waiting for European consensus, but at the time of the Budget it said that a freeze in air passenger duty would result in a small increase in carbon emissions and local air pollutants.

Tim Yeo, the Conservative chairman of the committee, said that drastic measures were required, and that Britain had to take the lead.

Mr Yeo conceded that a 17.5 per cent rise in prices would be difficult for many to accept.

GOVERNMENT TARGETS

Buses From 2001 to last year, bus use declined in every region of England apart from London. The target of 600 low-carbon buses entering service each year by 2012 is also not being met. Only 23 were sold last year

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