AIR PASSENGER TAX IN THE UK COULD GO UP – AGAIN

Dino D'Amore
By Dino D'Amore February 28, 2011 09:53

AIR PASSENGER TAX IN THE UK COULD GO UP – AGAIN

Airlines have criticised the coalition government in the UK for slow progress in reforming the controversial Air Passenger Duty (APD). Concerns are growing in the airline industry that promised reforms to the costly tax promised last year have been “kicked into the long grass” as government focuses on reducing the public deficit.

The government pledged in its coalition manifesto last year to reform the APD – a tax which is imposed on every passenger on aircraft leaving Britain except those who are on transfer. The pledge proposed moving APD to a per plane taxation system, which airlines claim will mean a better deal for travellers and will also incentivise carriers to cut down on their carbon footprint. But a promised consultation on reforms is yet to materialise and fears are mounting that APD could even be increased in next month’s Budget to help overcome short-term spending cuts.

APD was raised to £12 per passenger on European destinations in November, marking a 140% rise since 2007. Britain has the highest rate of APD of any European country. Some long-haul passengers face fees of up to £85. It is likely that APD will be adjusted to show an increase for the government unless airlines lobby government hard over the next few weeks.

Dino D'Amore
By Dino D'Amore February 28, 2011 09:53
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