APD rises to go ahead; private jet tax delayed
30.11.11
Airlines including British Airways and Virgin Atlantic have accused the Government of favouring private jet travellers over commercial airline passengers by delaying the introduction of a ‘Learjet tax’ until 2013 whilst confirming double inflation increases in air passenger duty (APD) for other passengers, the Guardian reports.
A campaign by the biggest names in British aviation failed to achieve the abandonment of increases in air passenger duty (APD), as the Treasury confirmed plans to push ahead with six years of tax rises. However, the imposition of a tax for business jet users – previously exempt from APD – has been moved from next year to April 2013.
Passengers will find out the latest added cost of flying from a British airport next week when the Treasury announces new flight tax bands in the Government's response to the air passenger duty consultation on December 6. At the moment APD costs range from £12 for a short-haul to £85 for an ultra-long haul flight.
The British Air Transport Association, which represents 10 airlines including BA, Virgin Atlantic and Ryanair, said the delay was ‘unfair’. Simon Buck, BATA chief executive, said: ‘It is a year's grace for the wealthy man in the business jet, but for millions of people who cannot afford to fly by business jet, they will have to pay APD increases at twice the rate of inflation from April next year. How is that fair?’
According to new Treasury forecasts, the state's APD revenue will rise from £2.2bn last year to £2.6bn this year, rising annually until it hits £3.8bn in 2016/2017.
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