Renewed Calls for Changes to Air Passenger Duty Ahead of Budget
Some of the leading chief executives of tourism, aviation, and trade union have provided a letter to the British Chancellor, mentioning the Air Passenger Duty changes in the 2012 budget
The current changes made in the Air Passenger Duty can create an impact in the United Kingdom. The British Chancellor, George Osborne, is to confirm an eight percent increase in the tax.
The office for budget responsibility also adds APD revenue and expected to increase around £3.6 billion during the year 2016-2017, which is around 46 percent increase. The signatories in the letter mentioned that the increase in APD is huge and no plans to equalize the new Emissions Trading Scheme (ETS) to the passengers. Passengers have to pay the double the tax, this year. This huge increase in tax goes beyond the expected and also tax discrimination against the travelers.
The ETS was introduced during January and levied a charge on all flights in to the European Union, for reducing the carbon emission. The signatories in the letter to British Chancellor also says that removing or decreasing the Air Passenger Duty would provide additional 91,000 jobs and add £4.2 billion to the economy in just 12 months. The current increase plan in the APD, which is effective from April 1st, actually means that a family with four members, traveling to Florida in the economic class would cost £260. When compared to the last seven years, the APD rate has been increased to around 160 percent in the short-haul and 360 percent in the long-haul.
This impact also created inflation in the country for about 18 percent. The signatories in the letter also added that the ADP increase would continue to damage the economic conditions in the industries and also the UK economy. The signatories also requested the chancellor to withdraw the planned increase in ADP in the current year budget.
