Anti-APD campaigners urge Chancellor to re-consider tax – again
A Fair Tax on Flying campaign has written to the Chancellor of the Exchequer ahead of this year’s Budget on March 19 urging him to review the effects of air passenger duty.
The submission warns George Osborne that "the Treasury is looking increasingly isolated on the issue of air passenger departure taxes" as the Republic of Ireland will abolish air tax in April and Scotland’s National Party have called for a halving of APD should it secure independence.
The campaign told Osborne: "Experience suggests that cross border air tax disparities can have a significant impact on demand for flying.
"The [Republic of Ireland’s] Air Travel Tax, will be abolished in April 2014. We are concerned that this may have an impact on the competitiveness of flights departing from the Northern Irish capital, which are subject to APD on short-haul journeys… We would urge you to monitor the situation in Northern Ireland with regards to the damage that the abolition of the Air Travel Tax will have on flights from the country."
It said that increases of three of the four APD bands, and year-on-year rises in APD are making the UK economy "increasingly uncompetitive".
The submission cites growing support for a review and reform of APD, including the fact that over 200,000 people and over 100 MPs have written letters calling for a review.
From April 1, there will be the following changes to APD:
– Band A (flights up to 2000 miles) will remain at £13 in economy and £26 in all other classes
– Band B (flights between 2001-4000 miles) will increase to £69 in economy and £138 in all other classes
– Band C (flights between 4001-6000 miles) will be increased to £85 in economy and £170 in all other classes
– Band D (all flights over 6001 miles) will be increased to £97 in economy and £194 in all other classes
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