Air Passenger Duty to be changed

News at Gatwick 20/03/2014

Bangkok Protests affects on tourism : March 2014 : News Index

Will be overhauled after the Budget

The Air Passenger Duty for UK passengers on long-haul flights will benefit from an overhaul according to the Chancellors 2014 Budget.

As the tax amount is calculated according to the distance between London and the destination of the country’s capital city, the amount that a British traveller needs to pay on an eight hour flight will, in fact, pay more than travellers on their way to a destination taking 11 hours.

Since 2007, the APD has risen by up to 470 per cent. This has added a big burden to any family wanting to fly off together on a trip, some long haul trips warrant an increase of hundreds of pounds, depending on hour far they travel, the lesser amount per traveller is roughly £50.

The Chancellor stated in his Budget that he would scrap entirely the two of the highest of the four tax bands. This will mean that those on long-haul flights will only pay as much as they do now when travelling to the United States.

A spokesman from Virgin Atlantic said: 'A two-band APD rate is a very welcome simplification to remove some of the biggest distortions of the current system, which the Chancellor himself admitted is crazy and unjust.

'The Government has rightly recognised the damage APD is having on exporters and the travelling public alike.’ She went on to say 'There is a growing body of evidence demonstrating the huge economic benefits to the UK of reducing or abolishing APD and we hope that the Government will continue to go further in the long run.'

A spokesman for British Airways commented that: 'This is window dressing a tax that even George Osborne says is "crazy".

'It still punishes families and costs UK jobs. The only long-term solution is to scrap APD in its entirety and allow the aviation and tourism industries to flourish, to the benefit of the wider UK economy. APD remains the highest aviation tax levied in the world.'

The chief executive of the Board of Airline Representatives, speaking out for 75 UK airlines, Dale Keller said: 'The Government has finally acknowledged what the industry and business knew all along - that the highest rates of aviation tax in the world were a brake on driving the UK's economic growth with emerging markets.'

Bangkok Protests affects on tourism : March 2014 : News Index

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