Chancellor George Osborne has gone ahead with a planned 2.5 per cent increase in Air Passenger Duty from April 2013.
Osborne confirmed the latest rises in the aviation tax during the autumn statement made today in the House of Commons. The latest increase follows an 8 per cent hike in APD which came into effect in April 2012.
Members of the Fair Tax on Flying alliance of travel groups and companies criticised the latest increase in APD and continued calls for a full independent report on the economic impact of the duty. The alliance has helped more than 200,000 people to contact their MPs through an online campaign to complain about APD.
Darren Caplan, chief executive of the Airport Operators Association, said: “It defies belief that the Treasury continues to ignore the calls of 200,000 constituents regarding the UK’s eye-wateringly high levels of Air Passenger Duty.
“The government is disregarding the will of the people by continuing to increase APD, and ignoring widespread calls by MPs for a simple review into what is the highest air passenger tax in the world by far.”
Dale Keller, chief executive of the Board of Airline Representatives in the UK (BAR UK), added: “Our airline members are frustrated that the UK Government continues to act unilaterally in taxing a global business, with scant regard to international visitors who also have to pay this extortionate tax.
“With Amsterdam and Frankfurt expanding their airport capacity, as well as imposing considerably reduced or zero-rated air passenger tax, these European airports are becoming more attractive as business hubs for connecting flights.”
The increases in APD per passenger from April 1, 2013 are:
Band A (0-2,000 miles from UK, includes Europe)
Economy: £13
All other cabins: £26
Band B (2,001-4,000 miles, includes North America and Middle East)
Economy: £67 (up by £2)
All other cabins: £134 (up by £4)
Band C (4,001-6,000 miles, ncludes South America, China and India)
Economy: £83 (up by £2)
All other cabins: £166 (up by £4)
Band D (over 6,000 miles, includes Australasia, Malaysia and Indonesia)
Economy: £94 (up by £2)
All other cabins: £188 (up by £4)
Source: HM Revenue & Customs