News

Air Passenger Duty levels punishing holidaymakers – further evidence from the TaxPayers’ Alliance

PRESS RELEASE: EMBARGO 27 AUGUST 2013

Air Passenger Duty levels punishing holidaymakers – further evidence from the TaxPayers’ Alliance

The Airport Operators Association (AOA), the trade body for UK airports, has responded to the publication of a new TaxPayers’ Alliance ‘Tax on holidays’ report which shows that in 2012 the estimated total tax bill for holidays abroad was over £2 billion (£56 for each holiday abroad taken) and that higher rates of APD since 2008 have contributed to a £500 million increase in holiday taxes to 2012, to over £2 billion.

Darren Caplan, Chief Executive of the Airport Operators Association, said:

“This report clearly shows that eye-wateringly high levels of Air Passenger Duty the UK are punishing holidaymakers. It cites the example of a family of four flying to Florida: APD in 2012 for flying economy class to the US was £260, representing almost 75% of the £350 total holiday tax levied on UK holidaymakers travelling to the States. Leaving aside the fact that APD has gone up even further since 2012, it cannot be right that UK families pay over £260 in APD when the equivalent family flying from France pays £38. What’s more in 21 out of 27 other EU nations no APD is levied at all, and several EU nations have scrapped APD recently due to the damaging impact it was having on their economies.

Chancellor George Osborne needs to signal a cut in APD in his forthcoming Autumn Statement; and should commission his Treasury team to conduct a study into the damaging impact UK APD is having on tourism and business. Lower levels of APD would stimulate economic activity and result in increased tax revenues for the UK – if the Chancellor disagrees, why not prove it via a Treasury study?”

For further information please contact Patricia Page on 020 7799 3171 or [email protected]

ENDS

Notes to Editors:

The Airport Operators Association (AOA) is the trade association that represents UK airports. Its mission is to see UK airports grow sustainably. It represents the views of UK airports to Government, Parliament and Regulators to secure policy outcomes that help deliver our mission. The AOA represents some 50+ UK airports and general aviation airfields in the UK. For more information, please visit www.aoa.org.uk.