Air Passenger Duty may be increased

The government may postpone plans to replace the Air Passenger Duty (APD) and increase the amount instead.

Travel Insurance News - 27/11/2008

<< Fewer UK visits to US due to weaker pound | Travel News | One hundred thousand tourists stranded in Thailand >>

UK airlines and British travel association, ABTA, are concerned that the chancellor, Alistair Darling, is about to introduce an increase in the amount of the APD in his pre-Budget report to be released next week.

In that report, he is expected to reduce income tax decreases that are aimed at stimulating the faltering British economy.

Darling has been expected to release details regarding the new Aviation Duty in the report. This is the proposed replacement for APD, and is supposed to be introduced in November of next year.

The new tax would be based on the type and weight of the aircraft and the distance of a particular flight.

Mark Tanzer, chief executive of the ABTA, sent a letter to Darling last week expressing the industry’s concern about the lack of information available on Aviation Duty and noted that the industry would be very disappointed if APD were increased.

The association executive added that travellers and travel operators are already struggling due to the credit crunch and fuel costs, and that any increase in the APD would be a considerable burden to the industry.

Last year, the amount of APD was doubled by the government on all flights.

<< Fewer UK visits to US due to weaker pound | Travel News | One hundred thousand tourists stranded in Thailand >>