p5 news Apr24 22/4/09 21:58 Page 5
ttglive.com
budget round-up news
TAX CHANGES.
C
‘Optimism may
O
STO
VER
R
Y
UK elections are
spur recovery’
new APD weapon
SMALL AND MEDIUM-sized businesses should
benefit from this week’s budget, according to
Chris Gray.
this week with 6,470 signatures.
experts, but big earners were advised to seek CARIBBEAN governments have At the Lords reception, Bartlett
advice on tax and pensions. joined forces to make Air Passenger told Gillian Merron, Foreign Office
The chancellor granted SMEs a 40% tax break Duty an issue at next year’s general minister for the Caribbean, that there
for the following year on capital expenditure. election by mobilising support in key was anger in the Caribbean and
A £750 million strategic investment fund to marginal UK seats. the UK about the impact of the
help firms emerge in a strong position from the Ministers have drawn up a hit list of “discriminatory” changes, due to
recession was also revealed. 40 seats where Caribbean communi- come into force in November.
The income tax rate for people who earn more ties are big enough to hold the balance of power. He urged guests, who included many MPs in
than £150,000 has been increased to 50% and A campaign has started to urge them to pres- marginal seats, that although it was too late to
tax relief on their pensions will be restricted from sure their local MP before the general election. block the changes in the budget, the tax could
April 2011. At a reception for the Caribbean business still be reformed.
Russell Eisen, director of taxation services at community at the House of Lords this week, Bartlett later told TTG: “The Caribbean com-
chartered accountants Elman Wall, said the Jamaican tourism minister Ed Bartlett (pictured) munities in the UK are beginning to understand
spelt out the potential cost to the island of the this will hurt them.”
proposed rise in APD. Abta chief executive Mark Tanzer said less
Bartlett and St Lucia tourism minister Allen well-off families in the UK would be hit by the
Chastanet said TTG’s Fair Fares campaign had chancellor’s refusal to change the tax.
highlighted the injustice of changes to APD, New research showed 22% of travellers to
which will tax passengers to the Caribbean at a the Caribbean had a household income of less
“The budget speech
higher rate than those to the US, despite being than £25,000. They would be faced by an
smacked of election-
nearer to the UK than most of America. increase in tax of 87%, from £320 to £600, for a
Our Fair Fares Downing Street petition closed family flying premium economy in 2010, he said.
eering, but any
attempt to stimulate
In numbers: How APD will impact on Jamaica
the economy should
■ Jamaica attracts 200,000 UK visitors up to one in five of those visitors will find it
be welcomed”
each year, representing 10% of all arrivals significantly harder to afford to travel
■ Britons spend $250 million a year, 10% of ■ If those 20% stay at home, it would mean a
Russell Eisen, Elman Wall
Jamaica’s total tourism earnings $50 million loss to the Jamaican economy
■ The Jamaican government believes the ■ That loss will then hit the government’s
rise in APD from November 2009 means investment in schools, hospitals and roads
budget speech smacked of electioneering, but
INDUSTRY VIEW.
Advantage chief executive John McEwen said:
any attempt to stimulate the economy should be “This is a kick in the teeth for the UK’s tourism
welcomed.
‘Kick in the teeth’
industry that will have an inevitable impact on
“The budget was good news and will present tourism jobs at home and abroad.”
opportunities for investment, but he could have for UK tourism Thomson Holidays managing director
gone further to stimulate the economy,” he said. Dermot Blastland said the budget meant many
“High earners are going to have to take a look OUTBOUND and inbound travel will shrink as a ordinary families would not be able to afford
at how they organise their affairs. The 50% tax result of the chancellor’s decision to press on extra leg-room because premium-economy
will hit a number of directors and owner- with increases in APD, airlines, operators and class would now be taxed at the same rate as
managers. Pension contributions will also be hit.” agents warned. business class.
Simon McLean, managing director of Bar UK, which represents scheduled airlines, Co-operative Travel managing director Mike
Click Travel, said: “The chancellor is far more called on the Treasury not to implement the Greenacre has proposed a different system of
optimistic than most forecasters when he says changes to the tax in November, because they APD charges.
the economy will be growing by the end of the would discourage travellers from leaving and en- He suggested it should be based on each
year. tering the UK. flights’ emissions, like carbon offset schemes,
“But confidence drives the business world and Travel firms would suffer but the government and said this would give Caribbean flights a
this could just be the pill that is needed.” would not meet its tax revenue targets, it said. dramatic reduction in charges.
24.04.2009 05
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