Air Passenger Duty Rise
Chancellor delivers more bad news for travellers
In yesterday's Autumn Statement George Osborne revealed a further increase in the Air Passenger Duty rate affecting primarily long-haul flyers and passengers who use private jets.
From 1 April, the charge will go up 2.5% per passenger on all flights in the long haul tax categories (flights of over 2000 miles). And, for the first time, will apply to passengers on private jets (aircraft of 19 seats or fewer), previously exempt from APD. These passengers will have to pay between £52 and £376 extra, depending on the length of their flight.
Travel industry leaders yesterday posted their responses to the news:
Mark Tanzer, CEO ABTA– The Travel Association, said:
“With growth forecasts slashed yet again by the Chancellor, the Government needs to focus every effort on driving growth. Tourism is a sector that the Prime Minister has previously outlined as a key growth opportunity and yet once again the Government has announced a rise in APD, strangling the industry’s potential. Meeting the Treasury Minister responsible for APD yesterday, I stressed to him the urgent need for a review of the effects of APD on growth and the economy. The tourism sector is ready to employ more people and to offer genuine economic growth but to do this we need the Government to look again at higher and higher levels of Air Passenger Duty and back the whole of our sector – domestic, inbound and outbound.”
Luke Pollard, Head of Public Affairs at ABTA, said:
“The Chancellor is right to prioritise growth in his Autumn Statement, but that intent looks hollow whilst he yet again hikes UK air taxes. To further increase the world's highest aviation tax whilst at the same time refusing to invest in proper modelling of the economic impacts of this tax is very concerning. This year, nearly 300,000 people have backed the industry's call for a review that would show what effects this tax is having on the UK economy's ability to grow. Without such an analysis, the Government will only continue to put off foreign tourists and business investment, make holidays abroad more expensive and further make UK goods and services less competitive."
See ABTA news
Simon Buck, chief executive of the British Air Transport Association (BATA), said:
"There is strong evidence to suggest that the imposition of the highest taxes on flying in the world costs the UK economy over 90,000 jobs and over £4bn in lost business in 2012 alone. With APD raising £2.6bn last year, we believe the Treasury is failing to exercise proper diligence in its management of the taxation system – effectively killing the goose that lays the golden egg."
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Published: 6 Dec 2012