Wednesday, November 30, 2011

Airlines condemn UK gov't for 10% rise in Air Passenger Duty

British Airways (BA) and Virgin Atlantic on Wednesday condemned a decision by the British Chancellor of the Exchequer to increase the controversial Air Passenger Duty (APD) by 10 per cent from April 2012.

The duty means the cost of air travel from the UK to the Caribbean could rise further next year. 

The British government wants to generate about £2.6 billion (TT26 billion) from the APD in 2011/12, up from £2.2 billion during the previous financial year. The figure will increase to £2.8 billion (TT$28 billion) in 2012/13.

In a joint statement, the airlines said, “By increasing this tax by double the rate of inflation, he (Chancellor George Osborne) is further deterring inbound tourism and foreign investment, and choking off yet more job opportunities for young people.”

The Treasury said in its Autumn Statement that the tax would increase on April 1, 2012 as was previously announced. Owners of private aircraft will have to start paying the APD one year later in April 2013.

The Caribbean has lobbied the British government for a break on the tax. Reports suggest that the region could still get a reprieve when the Treasury department addresses possible changes to APD’s contentious banding system next Tuesday, under which the rate is calculated.

Regional governments and industry partners have argued that the system favours other destinations like the United States.

Caribbean Tourism Organisation and other groups have asked been lobbying the British government to adjust or scrap the travel tax, stating that it discriminates against the Caribbean and its Diaspora in the UK.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai