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17/11/2011
Airlines Call For End To Passenger Tax
Airlines from the UK and Irish Republic are calling for the UK government to get rid of the Air Passenger Duty.
The tax applies to almost every ticket on a flight taken from within the UK and has risen sharply since it's introduction in 1994, since when plane fares have plummeted dramatically.
The tax is being opposed by Easyjet, Ryanair, Virgin Atlantic and British Airways. The airlines say it penalises British holidaymakers and makes the UK a less attractive destination.
The call comes as Chancellor George Osborne prepares his autumn budget and is expected to announce an increase in the tax, which airlines estimate generates as much as 2 billion pounds ($3.2 billion) annually for the coalition government.
APD can add £24 to £170 to the cost of an airline ticket.
In March, the Government held a consultation to reform the tax, but no decisions have since been taken.
Under the reforms being considered by the Government are a "per plane duty" which would broaden the tax base by including groups that are not currently covered by APD, such as air freight traffic and passengers who transit or transfer at UK airports.
Carriers currently pay APD on a per-passenger basis with the tariff rising in four bands the further a destination is from London. A business-class passenger flying within Western Europe pays 24 pounds, with the tax rising as high as 170 pounds for locations in Australia and South America.
U.K. carriers also say that APD will create double taxation as they’ll have to participate in the European Union’s emission-trading system from next year.
(DW)
The tax applies to almost every ticket on a flight taken from within the UK and has risen sharply since it's introduction in 1994, since when plane fares have plummeted dramatically.
The tax is being opposed by Easyjet, Ryanair, Virgin Atlantic and British Airways. The airlines say it penalises British holidaymakers and makes the UK a less attractive destination.
The call comes as Chancellor George Osborne prepares his autumn budget and is expected to announce an increase in the tax, which airlines estimate generates as much as 2 billion pounds ($3.2 billion) annually for the coalition government.
APD can add £24 to £170 to the cost of an airline ticket.
In March, the Government held a consultation to reform the tax, but no decisions have since been taken.
Under the reforms being considered by the Government are a "per plane duty" which would broaden the tax base by including groups that are not currently covered by APD, such as air freight traffic and passengers who transit or transfer at UK airports.
Carriers currently pay APD on a per-passenger basis with the tariff rising in four bands the further a destination is from London. A business-class passenger flying within Western Europe pays 24 pounds, with the tax rising as high as 170 pounds for locations in Australia and South America.
U.K. carriers also say that APD will create double taxation as they’ll have to participate in the European Union’s emission-trading system from next year.
(DW)
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