Airport Operators Association Media Release
For immediate release - 26 August 2010
Increases in aviation taxation will damage the economic and social benefits of aviation
For the third time in recent years passengers at UK airports will be hit with increased taxes. On 1st November, a family of four visiting relatives in Australia will pay £85 each in tax on top of their air fares, more than twice the amount levied this time last year.
The UK government is increasingly out of step with its European partners. Last year the Dutch scrapped their flight tax because of the impact on the economy.
The government’s projections show the £2bn currently collected in departure tax is set to almost double to £3.8bn, over the next five years.
Ed Anderson, AOA Chairman commented: ‘In August the Prime Minister recognised the role that tourism can play in helping the economy. He said ‘it’s fundamental to the rebuilding and rebalancing of our economy. It’s one of the best and fastest ways of generating the jobs we need so badly in this country.’
We welcome this statement by the Prime Minister; the majority of inbound tourists arrive in the UK through airports, however the increasing level of APD is acting as a significant barrier to attracting tourists to the UK and to the Prime Minister achieving his ambition for the UK to be a top 5 international tourist destination.’
He added: “The government needs to take a fresh look at the whole question of taxing flight. Aviation will enter the European Emissions Trading Scheme in 2012. Auction revenues from ETS are likely to reach £900 million; this money goes directly to the Treasury. Air Passenger Duty should be wound down after 2012.”
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Note to Editors:
- The Airport Operators Association (AOA) is the trade association that represents the interests of British airports.
- In the Pre-Budget Report (November 2008) it was announced that APD would be restructured from two bands to four, and that the level of the Duty would rise in November 2009 and November 2010. The new government has stuck to these plans.
- APD Rates 2008-10 (Economy)
Band A 0-2000 miles Band B 2-4000 miles Band C 4-6000 miles Band D 6000 miles Pre Nov 09 - £10.00 Pre Nov 09 -£40.00 Pre Nov 09 -£40.00 Pre Nov 09 -£40.00 Nov 09 - £11.00 Nov 09 - £45.00 Nov 09 - £50.00 Nov 09 - £55.00 Nov 10 - £12.00 Nov 10 - £60.00 Nov 10 - £75.00 Nov 10 - £85.00 This Nov compared with last Aug Bank- This Nov compared with last 88% This Nov compared with last Aug Bank 20% up Aug Bank- 50% up 113% up