FTO calls for end of taxation
The Federation of Tour Operators has called on the government to resist any further taxation on the industry after revealing £24 of every holiday disappears into Labour’s coffers.
Chairman Ian Ailles said it was time the government recognised the sizeable contribution made by travel and tourism and looked elsewhere to raise cash.
In a separate development, the FTO urged ministers to back a CAA recommendation to extend bonding to scheduled and low cost carriers.
FTO chairman Ian Ailles said recent European Union suggestions that air travellers could pay an additional tax to help poverty in Africa should not proceed.
“We all want to help the Third World but what is the synergy between air travel and poverty?” he said. “Governments should recognise the contribution travel and tourism already makes to the UK and world economies and reject calls for ever increasing taxation.”
Figures compiled by PricewaterhouseCoopers revealed £24 per holiday goes to the government although it includes national insurance contributions, corporation tax and business rates.
“It is right that customers realise that they are already making a hefty contribution to government coffers,” said Ailles.
In addition, Ailles continued, operators face the burden of paying huge bonds to financially protect customers – while scheduled and low cost carriers remain exempt.
“Scheduled and no frills airlines, and other travel organisers, are currently outside this scheme, leaving million of customers unprotected,” he said. “We call on the government to support the recommendations of the CAA and Transport Select Committee to extend ATOL-style bonding.
Report by Steve Jones
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