The British Air Transport Association (BATA) has called for chancellor George Osborne to scrap Air Passenger Duty in next month’s budget.
Osborne is due to unveil the new Conservative government’s first budget on July 8 and BATA, which represents UK-based airlines, has submitted evidence to the Treasury showing the costs to the UK economy of APD.
BATA said that the damage APD does to UK PLC will be highlighted in a new report by Price Waterhouse Coopers to be released next week and a preview of this analysis has already been submitted to the government.
PWC produced a similar report on APD two years ago but its findings were dismissed by the Treasury.
The association, which includes British Airways, Easyjet, Flybe and Virgin Atlantic as members, is also calling for the next planned APD rise in April 2016 to be cancelled.
Another concern for BATA is over proposals for APD to be devolved to the Scottish and Welsh parliaments, which it claims could market cause “distortions and unfairness to passengers living in different parts of the UK”.
BATA chief executive Nathan Stower said: “The new Conservative government wants to increase trade with the emerging economies, tackle low productivity and create two million jobs over the next five years.
“The experience of other countries and economic modelling for the UK suggests that the abolition of APD would make a significant contribution to those aims.
“The chancellor should use the budget to announce plans for the abolition of APD – the highest tax on flying in the world – during the course of this parliament.”