BAA calls for government to follow Ireland’s APD cut
Tuesday, 15 Dec, 2010
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Airport operator BAA wants the government to follow Ireland’s lead and reduce air passenger duty.
Ireland’s finance minister Brian Lenihan recently chopped APD by 70% in the hope that it will revive tourism to the country.
The aviation tax will go down from €10 to €3 from March 2011.
Now BAA is calling for similar action as it underlines the importance of the travel industry to the economy and the fact that, following the APD tax rise in November, Britain now has the highest aviation tax in the world.
Heathrow policy director Nigel Milton said: “The Irish recognise that aviation is fundamental to their recovery and this is very much something ministers in the UK need to take note of.
“We must stop treating air travel as if it’s a luxury we can do without and appreciate the very real contribution it makes to the economy. Around 250,000 UK jobs rely on aviation – with 40,000 being created by our new Terminal 2 – but strong links are vital for all businesses.
"David Cameron is doing great work in building business ties with China and India but the UK currently has the highest aviation taxes in the world. The government needs to ensure we are not making ourselves uncompetitive with punitive tax measures that will damage us in the long-term."
by Dinah Hatch
Dinah
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