Businesses flying from London’s airports shelled out more than £125 million in Air Passenger Duty (APD) last year, according to new figures.
British travellers heading overseas on business trips paid more than £58 million in 2011, while foreign business travellers visiting London paid £73 million on their outbound flights.
The figures were revealed by A Fair Tax on Flying alliance, whose members include the British Air Transport Association (BATA), London City Airport, ABTA and Carlson Wagonlit.
Simon Buck, BATA’s CEO, said: “It beggars belief that the Government can hit business in London with a tax of this magnitude.
“Businesses here in the capital are being dragged down by this stealth tax on wealth generators.”
For London’s businesses to play their part in rebalancing the UK economy and attracting foreign investment, the UK must be cost competitive, said Buck.
“Our European rivals impose little or no equivalent tax on flying,” he said. “How can we expect businesses to be able to compete abroad when they pay such high taxes on taking a flight to do business face-to-face?
“And how can we expect to attract new investment from the emerging world economies if we make it more expensive for foreign investors to come to London to do business?”
The findings come ahead of an expected rise in APD, thought to be announced by chancellor George Osborne in his Autumn Statement in November.