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With Air Passenger Duty (APD) set for an increase in April 2014, a survey conducted by the Association of British Travel Agents (ABTA) has revealed that more than half (52%) of MPs feel that APD could prove a disadvantage for businesses in the UK.
The rise in APD next year will mean that airline passengers could be set to pay almost £100 in tax on some flights leaving from the UK. The survey showed that fears surrounding the impact that APD could have on businesses was strongest amongst Conservative MPs (60%), an increase from last year’s survey findings which put this figure at 56%.
Commenting on the findings, Mark Tanzer, Chief Executive ABTA said: “It’s very disappointing that the Chancellor has once again chosen not to conduct a proper review of APD. It’s clear that there is strong support for a review both from within Government and from the public, as well as evidence from Europe that the tax is damaging. Earlier this year the Irish Government abolished its version of APD, joining many other European countries in doing so, as they realised the tax was doing more harm than good to the economy.”
A separate consumer survey conducted by ABTA revealed that four in ten (41%) consumers feel that the UK economy is at a disadvantage as a result of APD.
Stephen D’Alfonso, Head of Public Affairs ABTA added: “Whilst the headline news on APD from the Autumn Statement is disappointing, the improving growth forecasts that are putting smiles on the faces of the Treasury team should also re-energise and invigorate the industry, presenting us with an ideal opportunity to renew our calls for a policy shift on aviation taxation. ABTA will continue to make the case for the positive economic contribution the travel industry is making, and the competitive damage APD is doing.”
If you are heading abroad in 2014 it is important to take out worldwide travel insurance in advance.
Date Created: 11/12/2013