Air Passenger Duty (APD) - unfair tax or polluter has to pay?
Definition - "
Air Passenger Duty (APD) is an excise duty which is charged on the carriage of passengers flying from a United Kingdom
airport on an aircraft that has an authorised take-off weight of more
than ten tonnes or more than twenty seats for passengers. The duty is
not payable by inbound international passengers who are booked
to continue their journey (to an international destination) within 24 hours of their scheduled time of arrival in the UK".
The amount charged depends upon the distance you will travel to your destination ranging from £12.00 on the shortest European destination to £85.00 for over 6,000 air miles. When introduced in 1994, APD was sold to the public as a variant of an environmental tax. But, unlike the EU Emissions Trading Scheme which incentives airlines to use their aircraft more
fuel efficiently, APD is a flat rate tax per passenger that does
nothing to help the environment. Even the UK Treasury has now admitted that it's primarily a
revenue raiser.
However, the British Government has decided to increase this charge, despite them collecting £2.2 billion in revenues in 2011, to twice the level of inflation from April 2012 causing the whole of the travel and tourist industry to be in arms.
The new rates in their "band" format are punishing especially for families travelling - a family of four will pay £52.00 in tax to Spain, £260 to Florida and £368 to Australia (and that is for Economy Class).
With UK airport passengers numbers the same as 2004 it is becoming increasingly more difficult to attract tourists for
duty free shopping. It is worth noting that 22 out of 27 EU countries have no similar tax so it no wonder that Italy attracts three times more Chinese tourists than the UK... and a similar story with Germany and France.
So, is this an unfair tax on UK holiday makers, UK tourism and UK businesses..... or a way tax the polluters?
