Results of taxation survey released
The UK and Ireland Institute of Travel Management (ITM) has uncovered "surprising support" for the plans of Alistair Darling, Chancellor of the Exchequer, to increase Air Passenger Duty (APD).
But according to the ITM's survey of 185 travel and meetings buyers, support depends on whether money generated will go into developing ‘greener' aviation or not.
The ITM said the support is surprising "even in light of the impending Emissions Trading Scheme (ETS) entry," itself a system for imposing emissions reductions.
The survey also revealed "widespread confusion" over how to apply the 2.5% reduction in VAT from 17.5% to 15%, effective this week, to the travel and meetings billing process.
Paul Tilstone, ITM's chief executive, said: "The increases in APD and the fuel subsidies provided to the aviation industry suggest a confused approach which is not designed to change behaviour, rather to simply raise cash. This is particularly harsh at this difficult time for this sector."
Colin Goldney, ITM Research's partner, suggested the government provide guidance on the application of VAT.
"With respondents approximately split 50/50 on whether their service providers apply VAT to certain travel and meetings transactions, it is clear that the sector needs educating and government needs to address this issue," said Mr Goldney.
The ITM is planning an event in June focusing on the application of taxation in travel and meetings management.
www.itm.org.uk