Plan to replace APD with aircraft tax 'on track'
04.07.08
The Treasury has insisted it is ‘proceeding on schedule’ with proposals to replace Air Passenger Duty (APD), which is passenger focused, with a tax on aircraft. A spokesman said that the chancellor will make an announcement this autumn, Travel Weekly reports. However, the spokesman added: ‘No decision has yet been made. It is entirely a matter for the chancellor.’
The statement followed reports last week that the government is considering a retreat on the tax, after parliamentary under-secretary for transport Jim Fitzpatrick told delegates at a travel conference: ‘There are strong arguments that we should not proceed.’
The government has pledged to replace Air Passenger Duty with a tax on aircraft from November 2009. Airlines including British Airways are lobbying hard against the tax and would prefer to see APD retained. Cargo firms and the Confederation of Business Industry also oppose the switch and the US government has threatened legal action.
However, an easyJet spokesman said this week: ‘The arguments against the new tax are morally bankrupt.’
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