Budget special: Cook to continue fight against ‘phoney tax’
Thomas Cook says it will continue its campaign against air passenger duty, despite Chancellor George Osborne’s decision to freeze the tax for 12 months.
Group chief executive Manny Fontenla-Novoa said: "We are pleased that the Chancellor has recognised the excessive burden already placed on the aviation industry by APD, and has chosen not to make any immediate increase to this tax."
But he added: "APD is a phoney tax under the pretence of being green – the Government should have had the courage to revise this stealth tax so that British people do not have to continue to face unfair taxes on their hard-earned holidays.
"We’ve always said that APD is fundamentally unfair as it penalises those airlines who operate with the highest load factors, so for that reason we’ve always supported a move to a per plane duty.
"It is therefore extremely disappointing they’ve not honoured their commitment to make this change which would have been fairer on the passengers and would have encouraged a more environmentally friendly approach by all airlines."
Mr Osborne said the Government was unable to make the switch as it would have fallen foul of international law, but he said it is considering changing the banding scheme, which could reduce the tax for passengers flying to the Caribbean.
“Whilst we welcome the news that the Government are looking at the existing banding scheme of its APD scheme, we firmly believe that this isn’t enough," added Fontenla-Novoa.
"It is a great shame that at a time when they could – and should – be doing all they can to lessen the strain on hard working families, they are yet again making the consumer pay.”
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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