British Chancellor Osborne Refuses to Cut Controversial Air Passenger Duty
Just days after VisitBritain hosted travel buyers from all over the world at an event in Wembley Stadium in London on March 21, British Chancellor George Osborne has infuriated the travel industry in the United Kingdom and around the world by refusing to cut or discard the air passenger duty (APD) in his controversial budget announcement. The APD, the highest tax of its kind in the world, will rise in line with inflation this year and next year.
Although the APD was not touched, Osborne’s budget announcement included a reduction in a tax on beer. Opposing lawmakers and political pundits have pounced on Osborne’s decision. Conservative Graham Brady, chairman of the Conservative backbench 1922 Committee, said at a House of Commons debate that “it should not be the case that air travel becomes once again a luxury that can only be afforded by the rich.”
Tom Jenkins, executive director of the European Travel Operators Association (ETOA), told TravelPulse that the rise in APD is disappointing but the row over the tax masks much more important problems. “These are lack of airport capacity, an alienating visa application process, an obsolete regulatory environment and a frankly bonkers indirect taxation regime,” Jenkins said.
Patricia Yates, Visit Britain’s strategy and communications director, told TravelPulse that the increase announced in the budget was the planned increase to APD. “Cost is a major factor in people’s holiday decisions, so any move to reduce costs to help attract more inbound visitors will improve the U.K.’s competitiveness as a destination,” Yates said. “As it stands, APD is the highest flight tax in Europe, and the aviation and travel industries frequently criticize it as a barrier to competitiveness, impacting both on Britain’s price competitiveness for consumers and on the development of UK’s aviation route network.”
Source: Travel Pulse, http://www.travelpulse.com/british-chancellor-osborne-refuses-to-cut-controversial-air-passenger-duty.html
