Could “green tax” add 20% to fares?
Several newspapers today report that the Chancellor Gordon Brown is planning to introduce a “green” tax that could see air fares increase by as much as 20%.
The Government is widely expected to publish its White Paper on the aviation industry in December, and observers are now predicting that it could include a doubling of air passenger duty. Passengers currently GBP5 per single journey in Europe (GBP10 for business and first class), and GBP20 (GBP40 for business or first) outside Europe.
A spokesman for EasyJet reportedly told The Guardian that on an average £45 one-way fare, such an increase would be equivalent to 23% of the ticket price. He is quoted as saying: “We shall fight tooth and nail any increase in air passenger duty. It is very, very sloppy thinking. It is an attempt to price people out of the sky; the Government should say that and let people decide whether they like low-cost flying or not.”
One “observer” told the newspaper that doubling the tax would make ministers “look green, and not too dirty”, even if they give the go-ahead to further airport expansion in the south-east of the UK.
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