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<p>International treaties ensure that there is no taxation of international aviation
fuel, and the Government does not levy VAT on flights. APD ensures the aviation sector
contributes its fair share to general taxation. Even at the current rates of APD,
UK airports have enjoyed strong passenger growth: exceeding 15% in the previous five
years.</p><p>The Government has not conducted an assessment of route opportunities
under the specific scenarios mentioned. However, the Government is working with the
sector to understand better how they believe any reduced APD rates might support new
routes and increase connectivity.</p><p>The government will also look at the effects
of APD and VAT on tourism in Northern Ireland. A call for evidence on this issue was
announced at Autumn Budget 2017 and will be published in due course. Respondents in
the aviation industry will be able to submit evidence on the wider impacts of APD
upon UK tourism.</p>
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