Air tax to be extended to business jets

Posted 30/11/2011

 

 

Chancellor George Osborne has confirmed that air passenger duty will be extended to business jets.

The Treasury also confirmed that a planned double-inflationary increase of the tax of around 10% will go ahead as planned, next April.

A review of air passenger duty, announced by the Government in the spring, will be announced on December 6, but the Treasury confirmed today that this will not affect the rise next April.

The review could lead to changes in tax bands, he said, but there will be no across-the-board reduction in the tax.

Air passenger duty was frozen in last April's Budget but the Chancellor has now decided to go ahead with a double rise next April,.

The Board of Airline Representatives in the UK (BAR UK) said the rise would be devastating for the travel industry.

Mike Carrivick, chief executive of BAR UK said “Air travellers are being milked yet again and used as a soft target to prop up Treasury coffers," said chief executive Mike Carrivick.

"This announcement is completely at odds with the Chancellor's wish to invest in the transport infrastructure. No increase is justified, this action demonstrates the continued discrimination against air travellers.

"In the interests of the economy, we urge him to listen to A Fair Tax on Flying campaign, of which BAR UK is a member, and immediately reverse his plans and not impose this double inflationary increase in the next Budget.”

Multicom MD John Howell, whose e-petition calling for a further freeze of the tax attracted 550 signatures, said the Chancellor had denied the travel industry a much-need lifeline.

“This is very disappointing news and is not the right thing to do in the current economic climate," he said.

“We must continue to lobby hard though as we still have a long way to go to convince the government that there is a case for reforming APD.

“I am disappointed our voice appears to have been ignored by the Chancellor and the opportunity to keep APD levels at their current rate for another twelve months has been lost.”

Originally published 30 Nov 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/1a8205d4/l/0L0Stravelmole0N0Cstories0C1150A4620Bphp0Dmpnlog0F1/story01.htm