UK budget to proceed with tax
THERE’S bitter disappointment across the UK travel industry after the government’s budget confirmed that the unpopular Air Passenger Duty will be imposed as previously announced. ABTA chief executive, Mark Tanzer, responded to the budget by saying “We are very disappointed that the Government has chosen to ignore the travel industry and go ahead with its plans to drastically raise Air Passenger Duty. “This unfair tax already costs air travellers from the UK £2 billion and covers its environmental costs,” he said.
The rises in APD will see hefty tax increases of up to 87% on a range of destinations such as the Caribbean, with the current £160 APD cost for a family of four in premium economy rising to a staggering £600 in 2010. The increase is likely to hit both inbound and outbout sectors with a recent survey by one of Britain’s biggest tour operators showing that 22% of passengers travelling with them to the Caribbean had a household income of under £25,000.
Added 23.4.2009