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19 May 2012 |

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The trouble with APD

Government ready to withdraw the plan to introduce new environmental tax

Noel Hernandez Noel Hernandez
Wednesday 23 March 2011

The government is ready to withdraw the plan to introduce a new environmental tax on air travel to substitute the air passenger duty (APD).

air-passenger-duty.jpgThe pledge included in the coalition government manifesto consisted of changing the current APD, based on tax per passenger for another that taxes the plane, has been 'shelved' according to Channel 4 News.

The 'per plane' tax was meant to penalise airlines with older and high fuel consuming fleet, as well as those with planes that regularly fly half-empty. The APD instead charges individual passengers independently of the distance travelled or the efficiency of the plane used, and does not contemplate freight operators or private jets.

An alliance of airlines, airports and tour operators - including British Airways and Virgin Atlantic, as well as Gatwick and Heathrow airports - has teamed up to ask chancellor  George Osborne not to raise the current air passenger taxes, ahead of the settings of the new budget later this month.

Among the protesters are also Telegraph Travel and the travel association Abta, organisations which have launched a public petition for fair tax on flying to be signed on Facebook.

Also in Ireland, the Fine Gael-Labour coalition has promised to abolish tax on air travel in order to increase the number of visitors to the country, which has fell from 7.7 million in 2007 to 5.6 million last year.

The APD is a tax on all passengers leaving the UK, except those who are on transfer, aimed to restrict greenhouse gas emissions, and is expected to earn the government £2.2bn this year and £3.6bn by 2015.

The low cost airline easyJet has not joined the campaign to stop the raise in air tax. Being an airline with a younger and fuel-efficient fleet, they opt for a suppression altogether of the APD and a shift to the per-aircraft tax that the government is now said to not introduce.

EasyJet accuses on its website to other airlines of "secretly lobbying the government to get a free ride for their transfer passengers and for their longest flights." As well as pointing at cargo airlines that do not pay environmental taxes at all.

Noel

Mark
Mark, London
5 April 2011, 04:32PM

ADP is another example of crazy green taxes gone mad - they are no longer anything to do with being green, they are just another excuse to overtax the UK population.

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Dave Bourne
Dave Bourne
6 April 2011, 05:33PM

Why should we have to pay these stupid taxes. This is just more nonsense in the name of political and environmental correctness.

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Brian Templeton
Brian Templeton
7 April 2011, 01:40PM

Any old scheme to raise a bit more tax money to waste on the idle, the unwanted immigrants and the non-contributors to our society.
I have just been to America for three weeks and they do not tolerate this culture of non-work. People have to have jobs, sometimes two or three jobs to give them the money that they want to spend.
Sort out the waste and then there will be no need for these damaging taxes.

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