Air Passenger Duty (APD) will be frozen at the current rate, the government has confirmed in its latest Budget.
Chancellor George Osbourne announced in the House of Commons today (March 23) that there will be no increase in the flight tax until next year.
Osbourne has also pledged to change the existing bands, which he termed “arbitrary”, and to start making private jets pay the tax.
He said the Tory-Lib Dem coalition had hoped to change the tax from a per passenger duty to a per plane tax.
“We tried every possible option,” he said, “but all are illegal under international law.”
Osbourne said he would be working “with others” to get the rules changed, but did not give more details.
Mike Carrivick, CEO of the UK’s Board of Airlines Representatives (BAR), welcomed the decision to delay the increase to aviation taxes until 2012 following consultation.
However, he questioned why there had been no mention of the EU Emissions Trading Scheme (EU ETS), which airlines will pay into from January 2012.
“The UK travel industry already pays the highest aviation taxes in Europe and the existing APD levels do not take into account the EU ETS, which airlines will pay into from January 2012.
“Other EU countries have reduced or are removing existing taxes prior to the introduction of EU ETS.”
Carrivick said it was wholly unjustified for air travellers to pay twice and called on the Chancellor to reduce APD levels once the EU ETS comes into effect.
“Collectively, these taxes run contrary to the Government’s intention to increase tourism into the UK and will deter many of those wishing to visit the UK for the Olympics and Paralympics in 2012.”