THE UK government has announced it will abolish two higher bands of air passenger duty for longhaul destinations with effect from April 1, 2015.
This effectively means that taxes on all longhaul flights beyond 2,000 miles (3,219km) will now be imposed at the lower Band B rates of £71 (US$118) for every economy class passenger and £142 for every business class passenger.
In his budget speech on March 19, UK chancellor George Osbourne said: “We will also reform air passenger duty to end the crazy system where you pay less tax travelling to Hawaii than you do travelling to China or India.
“It hits exports, puts off tourists and creates a great sense of injustice among our Caribbean and South Asian communities here in Britain.”
Andrew Herdman, director general of Association of Asia Pacific Airlines, welcomes the reform: “The air passenger duty is a regressive tax on aviation that does untold damage to the broader economy, threatening the UK’s competitive position as a major business services hub and popular tourist destination.”
Herdman added: “Whilst the reform is a positive first step, there is a clear case for completely abolishing this tax. We hope the UK government will move further in that direction, recognising the positive role played by aviation as a key catalyst of social and economic development.”
