Air Passenger Duty Tax Rises Again
Stewart PerryPeople who are departing from the UK are going to see their ticket prices rise again this month. That is because as of November 1, the Air Passenger Duty tax has gone up…again. This now marks the second successive year that the government has increased this tax. It could be pricing some people out of their holidays.
According to some reports, the tax on a few flights will rise by up to 55 percent. This is likely to cost these travelers a ton of money. However, it will generate an estimated £2.3 billion for the Treasury in additional revenue. Of course, many believe that the whole reason why the government is doing this is in order to make additional revenue.
Of course, long-haul flights will be hit the hardest. Not only that, but family holidays are likely to be a lot more expensive too. That is because the tax is paid per passenger, or per ticket.
The chief executive of Ryanair, Michael O’Leary, just recently used his budget airline’s financial results to launch a new attack on the levy. He said that they continue to switch capacity away from countries like Ireland and the UK where they have a passenger tax. He also noted that the passenger tax is a tax at a rate of about 33 percent of Ryanair’s average ticket price. So this government is asking the poorest passengers to pay the most amount of tax.
However, Michael O’Leary did not stop there. He said that the airline continues to grow very rapidly in countries like Spain and Italy, where they have scrapped the tax. This has, of course, rewarded those places with increased traffic and tourism growth.
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Filed under Business & Finance, Travel News, UK News