The Fair Tax on Flying alliance has urged chancellor George Osborne to follow the Irish government’s lead and cut Air Passenger Duty (APD).
Osborne is due to make his autumn statement on December 5 and the anti-APD group has submitted evidence to the Treasury in a bid to sway his decision on the aviation tax, which is due to rise again in April 2014. The Irish government decided in October to scrap its aviation tax.
Darren Caplan, chief executive of Airport Operators Association, said: “The autumn statement is another opportunity for the chancellor to take the initiative on APD reform. A growing body of evidence is revealing the damage that APD is having on UK aviation and tourism.
“The UK risks becoming increasingly isolated if it refuses to put an end to current year-on-year increases in APD, and we respectfully urge the Chancellor to use this statement to change course.”
The submission from the Fair Tax on Flying group of travel companies and organisations states:
- APD is “a severe brake on demand, hampering aviation growth and restricting the ability of this sector to energise and mobilise the wider UK economy.”
- Continuous rises in APD are making the UK economy increasingly uncompetitive, creating a barrier for business, preventing growth and the creation of new jobs.
- The current UK economic climate is conducive to a reform of the tax, with GDP growing for the third quarter running.
- The recent abolition of air travel tax on Ireland puts the UK at a competitive disadvantage, and reveals how out of touch the UK is with international thinking on air passenger taxes. The submission said: “We applaud the Irish for their forward thinking, and encourage the Treasury to take similar steps to reduce the negative effects of the tax in the UK.”
Dale Keller, CEO of BAR UK, said: “Our submission sets out a compelling case for reform of APD. The Labour opposition has now joined over 100 MPs, 200,000 members of the British public and over 250 CEOs of UK businesses in requesting a review on the impacts of this tax.
“The chancellor must listen to this growing grass-roots and parliamentary support and take decisive action.”
afairtaxonflying.org