Originally Posted by
zaphod424
This is an interesting point. Part of the reason airlines went with distance/sector based systems in the first place was to keep it abstracted from the money being spent, so as to make it basiclaly impossible for governments to tax, since there was no real link between points and currency. But if they're going to base rewards on spend now it allows governments to much more easily assign a real monetary value to these points, and therefore tax it.
No doubt BA would pass that onto the consumer. And tell us that we had asked to pay such taxes.
Is there a precedent in the industry for this or would UK gov be first movers in taxing it as such?