01 July 2010

ABTA puts pressure on Government over APD

ABTA is calling for the Government to publish its consultation on replacement options for Air Passenger Duty before the summer Parliamentary recess.

The association says detailed discussions need to start now to find a replacement for the tax.

Chancellor George Osborne MP has promised to report back to Parliament in the autumn on any proposals, which will see APD changed from a per passenger to a per plane tax.

But ABTA said it must start coming up with the exact design, structure and level of any new aviation tax now.

ABTAÃ¢â¬â¢s head of public affairs Luke Pollard said: Ã¢â¬ÅâœWhile we broadly support a change to a per plane tax, which would incentivise airlines to fly more efficiently, with fuller passenger loads, the level and mechanics of the new tax concern our members and their customers greatly.

"We have seen with APD how a poorly designed tax system that ignored the valid concerns of the industry can be damaging to our sector and the sooner detailed policy discussions can begin the better.

"The travel industry knows that George Osborne wants to balance the books, but to maximise the tax take it must be set at a level where people can still afford to fly - not at a level where people are priced out of the skies."

He said tax on aviation in the UK has risen disproportionately over the past five years.

Ã¢â¬ÅâœABTA has always stated that there should be a fair tax take from aviation, and while we broadly welcome the move to a per plane duty that will incentivise airlines to fly more efficiently with full passenger loads - the level and structure of the new tax is crucially important.

Ã¢â¬ÅâœWhile leisure travellers are particularly price sensitive, higher aviation duty also has the potential to have a very detrimental effect on outbound and inbound tourism to the UK, not to mention those destinations who depend on tourism.Ã¢â¬~

By Bev Fearis