Airport Operators Association Media Release
For immediate release - 26 August 2010
Last Bank Holiday getaway before further increases to aviation taxation
The coalition government looks set to increase the UK’s aviation departure tax for the third time in recent years, following a rise last November and a doubling in 2007. By November, a family of four visiting relatives in Australia will be set to 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: “We all recognise the need to get public finances in order, but it’s unfair to penalise families who want to visit friends and family living abroad.
This Bank Holiday get away will be the last before more tax rises come through the pipeline. A family of 4 will be expected to pay £340 in tax, on top of the air fare. People will be thinking very hard next year if they want to see relatives in Australia or New Zealand”
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- 20% up This Nov compared with last Aug Bank- 50% up 88% This Nov compared with last Aug Bank- 113% up