Budget 2013: Air Passenger Duty rise to go ahead
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Planned rises in Air Passenger Duty (APD) are to continue on 1 April despite rallying calls from the travel and tourism industries to scrap the tax.
In his Budget announcement today Chancellor George Osborne made no mention of APD in his speech but documents confirmed rates for 2013-14 would increase, with further similar rises expected from 1 April 2014.
As a result the level of APD at standard rate will increase GBP4 for Band B, C and D flights, up to GBP134, GBP166 and GBP188 respectively. The tax was initially introduced 19 years ago at GBP5 for the UK/EU and GBP10 for other routes.
Board of Airline Representative UK’s chief executive Dale Keller said he was “beyond belief” that Osborne had prioritised a cut in alcohol duties over aviation.
“Just because the industry was fully expecting a slap in the face from the Treasury does not make it any more palatable,” he said.
“We have listened to much talk from the Government about the UK being in a global economic race and the importance for the UK to become more competitive, yet airlines, amongst the most global of businesses; continue to be hammered by the highest aviation tax in the world. The Government has built a veritable ‘wall of tax’ around the UK which international travellers and airlines are increasingly overflying,” Keller added.
Lobbying group A Fair Tax on Flying, TUI and bosses from IAG, easyJet, Ryanair and Virgin Atlantic voiced their disappointment of the increases.
“These year-on-year rises in APD are fundamentally damaging the UK’s competitiveness with our European counterparts. Our eye-wateringly high levels of APD already mean we pay the highest passenger tax on flying in the world – and this is not disputed by anyone in Government,” said Darren Caplan, chief executive of Airport Operators Association.
Earlier this year Northern Ireland was successful in abolishing APD for long-haul flights.