Airline chiefs claim APD unfair as emissions tax begins
Airline chiefs have again called for the Government to scrap APD as the EU emissions tax comes into force in the New Year.
Carolyn McCall from easyJet, Willie Walsh from IAG, Michael O'Leary from Ryanair and Steve Ridgway from Virgin Atlantic said in a joint statement: “Airlines’ entry into the EU emissions trading scheme (ETS) on 1 January brings the injustice of APD into even sharper relief.
“APD was initially conceived as a green tax, and the Treasury still maintains it brings ‘environmental benefits’.
“The reality is that no APD revenue has ever been spent on environmental benefit. In contrast, ETS means that all future growth in European aviation will be carbon-neutral, and provides an incentive for further reductions in emissions.”
They claim an increase in APD makes it more difficult to invest in carbon reducing technology and that under the ETS, UK airlines will already be facing charges of 400m euros a year by 2020.
They added: “APD is a self-defeating tax that pays for no environmental benefits, chokes off economic activity and cuts jobs.
"Only the UK holds back its own economic recovery.”
By Diane Evans
Diane
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