The UK Airport Operators Association (AOA) has called on the government to reduce Air Passenger Duty in next month’s emergency Budget.
The trade body, which represents more than 50 UK airports, wants APD “in line” with the UK’s European rivals.
It also wants any reduction in APD in Scotland and potentially Wales matched by a cut in all parts of the UK.
Last year, Chancellor George Osborne announced cuts to APD on some long-haul flights and scrapping completely for any child under 12 years old but the AOA wants the reductions to go further.
“While we are grateful to the Treasury for taking action in recent Budgets to reduce the longest haul APD rates and abolish the tax altogether for children, we are still uncompetitive compared to our nearest European rivals who either do not levy air taxes at all, or who do so at much lower levels than in the UK,” said AOA CEO Darren Caplan.
In a formal submission to the Treasury, the AOA has made a number of requests to the Government. These include:
- Reduce APD so that it is in line with the UK’s nearest European competitors
- Establish a thorough and far-reaching review to consider all aspects of the APD regime and its impact on aviation, tourism and business
- Ensure that any future reduction in APD in Scotland and potentially Wales is matched, immediately, by a cut in all parts of the UK, so that no area is disadvantaged in any way
- Provide economic support for the scaling-up and rollout of sustainable fuel production for the aviation sector, ensuring that aviation is entitled to the incentives already available for road transport fuel producers
Caplan added: “The overall rate of APD has been increasing for a number of years now, and is expected to net the Government a staggering £3.7bn by the end of the decade, compared to less than £1bn in 2007. It cannot be said that aviation is not paying its fair share to contribute to the Treasury coffers.”
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