Latest U.K. Budget Levies The World's Highest Aviation Tax

On Monday the U.K. Chancellor of the Exchequer, Philip Hammond, delivered a budget that was hailed as the “end of austerity”.  However, for airlines there was no such end in sight. With U.K. Air Passenger Duty (APD) currently the world’s highest aviation tax the Chancellor announced a freeze on levies on short-haul flights, but an increase in levies on long-haul flights, in line with inflation.

BACA – The Air Charter Association advises that this is a regrettable decision and urges that UK Air Passenger Duty should be drastically reduced rather than increased. With Brexit a matter of months away it is important that passengers flying to and from the UK can do so at competitive rates, rather than finding that up to 25% of their air fare consists of APD. Following the budget a number of airlines’ CEOs have called for APD to be scrapped or cut. BACA agrees with their stance and supports them wholeheartedly.

BACA Chairman Richard Mumford comments “In a time of political and regulatory uncertainty the UK’s aviation industry needs to have confidence that the government understands and has their best interests at heart.  APD already impacts the ability of our aviation industry to compete in a global market, and by increasing long haul APD in the budget, the Chancellor has shown complete disregard for the government’s stated aim of Brexit - namely to open the UK up to the world for trade.

(Image provided with BACA news release)

FMI: www.baca.org.uk