Air Passenger Duty is to rise again in April 2014 after chancellor George Osborne ignored industry pleas to reduce the aviation tax.
Osborne did not mention APD during his autumn statement to the House of Commons today (December 5), meaning that the tax will increase by the rate of inflation from April next year (see below for the full details of the rises).
Mark Tanzer, chief executive of ABTA which set up the Fair Tax on Flying alliance, said: “It’s very disappointing that the chancellor has once again chosen not to conduct a proper review of APD.
“It’s clear that there is strong support for a review both from within government and from the public, as well as evidence from Europe that the tax is damaging.
“Earlier this year the Irish government abolished its version of APD, joining many other European countries in doing so, as they realised the tax was doing more harm than good to the economy.”
Tanzer said that ABTA research showed that more than half (52 per cent) of MPs believed that the tax was “putting UK businesses at a disadvantage”. While consumer research found that 41 per cent thought the tax was hurting UK businesses.
Darren Caplan, chief executive of the Airport Operators Association, added:: “While the chancellor had positive things to say about the need for improved surface access to UK airports, which the AOA fully supports, we are extremely disappointed that he has again resisted calls to take action on APD.
"While countries across Europe – from Ireland to the Netherlands – are recognising that punitive aviation taxes are a drag on economic growth and are busy either abolishing or freezing their respective duties, the government continues to increase APD year-on-year, in the face of mounting evidence that current rates are damaging UK PLC. We respectfully call upon the Treasury to look again at this tax ahead of the 2014 budget, before the UK becomes even more of a global outlier.”
See below for the details of the APD rises:
Band A (0-2,000 miles from UK, includes Europe)
From April 1 2013
Economy: £13
All other cabins: £26
From April 1, 2014
Economy: £13
All other cabins: £26
Band B (2,001-4,000 miles, includes North America and Middle East)
From April 1 2013
Economy: £67 (up by £2 year-on-year)
All other cabins: £134 (up by £4)
From April 1, 2014
Economy: £69 (up by £2 year-on-year)
All other cabins: £138 (up by £4)
Band C (4,001-6,000 miles, ncludes South America, China and India)
From April 1 2013
Economy: £83 (up by £2)
All other cabins: £166 (up by £4)
From April 1 2014
Economy: £85 (up by £2)
All other cabins: £170 (up by £4)
Band D (over 6,000 miles, includes Australasia, Malaysia and Indonesia)
From April 1 2013
Economy: £94 (up by £2)
All other cabins: £188 (up by £4)
From April 1 2014
Economy: £97 (up by £3)
All other cabins: £194 (up by £4)