Industry unites to fight double inflation rise in air tax
Leading travel organisations welcomed yesterday's announcement by the Treasury that the Autumn Statement will take place on 29 November as an opportunity to focus the industry's efforts to challenge the Government's planned rise in Air Passenger Duty.
The Chancellor George Osborne is widely expected to use the economic statement to confirm his proposed double inflation APD rise in 2012 and detail how the air tax will be formed following a consultation earlier this year.
Industry bodies responded, saying the sector has twelve weeks to make its opposition heard 'loud and clear'.
The 'Fair Tax on Flying' campaign, launched by industry bodies in March this year, has been calling on the Government to halt any further rises in aviation tax, with revenue from Air Passenger Duty (APD) having increased by 2600% since it was first introduced in 1994.
It succeeded in persuading the Chancellor to freeze APD this year, but at the same time he announced plans for a double-inflation increase in 2012.
The Fair on Flying Campaign has called for reform in the way the tax is structured addressing concerns about issues ranging from the way Premium Economy seats are taxed to how destination taxation bands are drawn up.
It is expected that the Treasury will announce the new revised
APD regime in the Autumn Statement.
ABTA spokesman Luke Pollard said: "With just 12 weeks to go before the Chancellor makes up his mind about future APD rises, the industry must seize this opportunity to make our voice loud and clear: a double-inflation APD rise will damage the economy and we have to fight it together."
Chief executive of the British Air Transport Association Simon Buck said: "I know all members of the Fair Tax on Flying campaign will be redoubling their efforts and undertaking more activity over the coming weeks as we approach the Chancellor's Autumn Statement in late November.
"At a time when the UK economic recovery is faltering, the Government should be seeking ways to boost the UK travel industry rather than making air travel prohibitively expensive through the imposition of the highest taxes on flying in the world."
Chief executive of the Airport Operators Association Darren Caplan said: "We urge the Chancellor to take this opportunity to give an early indication the Treasury will reduce APD when aviation joins the EU Emissions Trading Scheme next January, to prevent the overall cost on passengers going up.
"We would also like the Chancellor to give a boost to business travellers, holidaymakers and people visiting friends and relatives around the world, by abandoning the planned double inflation APD increase in next March's Budget."
By Linsey McNeill
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