APD could increase because less people are flying
27.08.11
Air Passenger Duty (APD), the tax on plane tickets, could rise by nearly 25 percent because the number of people flying is failing to keep up with Government forecasts, the Telegraph reports. This has left the Treasury facing a hole in its finances that, depending on the rate of inflation, could be at least £500 million. British airline passengers already face the highest flight taxes in the world.
The Department for Transport now anticipates that around 250 million people will pass through Britain’s airports in 2015, 24 percent less than 315 million it was predicting two years ago. Passenger numbers have been depressed by the economic downturn, and the aviation industry believes soaring taxes have already priced people off aircraft. But with the Treasury looking to raise £3.6 billion from APD in 2015-16 - compared with £2.2 billion in the current financial year - the tax will have to rise more sharply than anticipated if the gap is to be plugged, the newspaper claims.
Last year the Government shelved the annual inflation-linked APD rise pending a review of the tax. But a further delay is considered unlikely this year, meaning that APD will rise in November. And because of the latest passenger forecasts the Treasury will have to push up the tax by just over 24 percent by 2015-16 if it is to meet its target. On current rates this could leave a family of four having to find an extra £57.50 in tax for a trip to New York on top of the £240 they currently pay.
To book heathrow airport hotels or heathrow airport parking at the lowest price, click on these links to two great heathrow airport car parking and heathrow airport hotel price comparison page.
