Chancellor George Osborne has announced the double inflationary rise of 10% to air passenger duty tax next April. He also confirmed that the tax will also be extended to business jets.
There will be a review of APD on 6th December, which could lead to changes in tax bands but will not affect the overall tax rise in April.
Many think that this will be a huge blow to the aviation industry. Mike Carrivick, chief executive of BAR (Board of Airline Representatives) UK said “Air travellers are being milked yet again and used as a soft target to prop up Treasury coffers. This announcement is completely at odds with the Chancellor’s wish to invest in the transport infrastructure. No increase is justified, this action demonstrates the continued discrimination against air travellers.
“In the interests of the economy, we urge him to listen to A Fair Tax on Flying campaign, of which BAR UK is a member, and immediately reverse his plans and not impose this double inflationary increase in the next Budget.”
Multicom MD John Howell, whose e-petition for a freeze on the tax attracted 550 signatures,also expressed his dissatisfaction with the announcement: “I am disappointed our voice appears to have been ignored by the Chancellor and the opportunity to keep APD levels at their current rate for another twelve months has been lost.”