New UK departure taxes slammed
SYDNEY – The Australian Tourism Export Council (ATEC) has slammed the new Airline Departure Tax proposals from the UK government.
British finance minister Alistair Darling announced yesterday that Air Passenger Duty (APD) would become a four-tier system based on distance travelled.
Passengers flying to destinations in Asia, Australia and New Zealand face being slugged the most.
Those flying furthest and having the biggest environmental impact will pay more, with travellers going to Australia forking out nearly A$200 in passenger tax in two years’ time.
Changes to APD would add STG15 in tax to a flight to Australia from next November and STG45 from November 2010.
APD is currently levied at STG10 on economy flights within Europe and STG40 beyond, with premium seats taxed at double those rates.
Under the changes, charges will be levied across four bands from November 2009.
Band A covers Europe, band B extends to destinations such as Egypt, Bahrain and the United States, band C takes in the Caribbean, and band D includes Australia and New Zealand.
Total APD on a band D flight will be STG55 from next November and STG85 a year later.
ATEC said the G20’s new global commitment to free trade has “fallen at the first hurdle, with the British government announcing that it will erect an artificial trade barrier by slugging long-haul air travellers with a new departure tax system”.
“ATEC believes that this new charge will significantly impact travel to Australia from the United Kingdom, and is a critical trade barrier between the UK and Australia and New Zealand.”
ATEC also accused the UK of using the climate change debate “to disguise this protectionist departure tax in ‘greenwash’.”
“We believe that this departure tax is in essence a protectionist measure designed to shield the UK and European travel markets from overseas competition.
“It will also impact on developing nations – for example those in the South Pacific – who are reliant on inbound tourism to generate much of their export income.”
ATEC has called on the Australian Government to protest the new departure tax “in the strongest-possible terms”.
Ian Jarrett
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