ANALYSIS THE LINE OF DUTY
Gary Noakes assesses the implications of recent changes to Air Passenger Duty (APD) and asks what next for the unpopular tax?
W
ith the UK’s finances still not fixed, it was always going to be difficult to persuade the Chancellor of the Exchequer to abolish Air Passenger Duty (APD). However, anti-APD campaigners scored a surprise victory last
autumn when George Osborne confirmed the Government would no longer levy the tax on children. From 1 May, under-12s in economy will be exempt from APD.
Ten, in March 2016, the tax will be scrapped for under-16s, regardless of the cabin class in which they are booked. For the A Fair Tax on Flying campaign, this was a big win. “Tis and the changes to the banding made in the last Budget
30 ABTA Magazine February 2015
show we are chipping away,” says ABTA’s Ilana Rapaport. From 1 April, these changes will start to be felt, particularly in terms of long-haul brochure pricing, with a family of four typically paying £142 less for a return trip to Florida. While some economics commentators might well wonder
whether the Chancellor can really afford such a gesture, the A Fair Tax campaign has long maintained that the annual £3bn gained through APD is offset by losses to UK Plc as a whole, as tourists go elsewhere and conferences and trade shows pick other destinations around Europe. “Tere is independent research to suggest that the Treasury would get this back in the long term,” explains Rapaport.
countrybycountry.com
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