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Home »News »Travel News

Air passenger duty to rise with inflation

24/06/2010

Any air passenger duty (APD) increases will be determined by the rate of inflation, it has been claimed.

Increases on ADP have already been made for November and, Frances Tuke, a spokesperson for ABTA - The Travel Association, said aviation tax is currently as the previous government left it, which is set to rise with inflation.
Her comments came as chancellor George Osborne announced in this week's Budget that the Treasury is expecting to raise £3.8 billion by 2015-16 from air travel.

Ms Tuke noted that the proposed government switch from APD to per plane tax could be beneficial for the environment, but she warned that, depending on the rate of tax, it could be harmful to the economy.

She said: "There is a switch being proposed from APD to per plane duty that we broadly agree with, but what we don't know is what level that will be set at, and what we're very keen to make sure is that people are not taxed out of the skies because that would be detrimental both to the health of the economy and the tax take."

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