APD rise comes in to effect
01.11.09
The first of two rises in Air Passenger Duty (APD) has come into effect, adding up to £30 to the cost of flying. Previously there were two APD bands, with one for short haul flights and another for long haul flights. However, from today it is now divided into four distance bands. The tax on the shortest flights rises by £1, with business and first class journeys over 6,000 miles going up from £80 to £110.
Today's rise in APD will particularly hit long-haul passengers travelling in business and first-class. The duty on economy class seats was previously £10 for short haul flights of up to 2,000 miles and £40 for long haul. Business and first class were priced at £20 and £80 respectively. The cost of APD for flights of less than 2,000 miles in economy class will now be £11, with duty on premium tickets priced at £22.
For journeys of between 2,001 and 4,000 miles the price will be £45 in economy class and £90 for other seats. For journeys of between 4,001 and 6,000 miles, the price is £50 in economy and £100 in premium classes. And flights of more than 6,000 miles, will cost £55 and £110 respectively.
From November 2010, economy class passengers on the shortest flights will be charged £12. Premium class tickets on the longest flights, will pay as much as £170 in APD.
The Government has cited environmental reasons for the rise, but airlines point out that the tax revenues are not ringfenced to be used for environmental measures, far exceed the carbon cost of flying and they are worried about business in a recession.
A spokesman for the Treasury said: ‘The government maintains that air travel should pay its fair share in tax. APD is an important contributor to the public finances, while helping the government achieve its environmental goals.’
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book gatwick airport hotel or gatwick airport car park at the lowest price, click on these links to two great gatwick parking and gatwick hotels price comparison pages.
