March 17, 2011
In the run-up to the Budget, tour operators have reiterated their opposition to Air Passenger Duty in its current form.
Reports last weekend claimed that the Government had abandoned a plan to switch from a “per passenger” to a “per plane” tax on the grounds that international regulations made tax on aviation fuel illegal, but a spokesman for the Treasury this week refused to rule out changes.
Peter Long, chief executive of Tui Travel, said: “The Conservatives and the Liberal Democrats committed in their election manifestos to replace APD with a per plane tax. This commitment was repeated in the Coalition Agreement.
“APD in its current form is not focused on environmental benefit. A per plane tax would be the simplest way of achieving a system that properly rewards and incentivises environmentally responsible behaviour.”
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Mr Long also criticised the fact that passengers flying in premium-economy cabins currently pay the same in APD as those travelling in business class and first class, and called for changes to the banding system, under which passengers flying to the Caribbean pay more in APD than those flying to Hawaii. In a meeting this week with European Union officials, the Caribbean Tourism Organisation described the tax as “discriminatory” .
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