First Set Of APD Hikes Hits UK Passengers
Abi BrayEven with a wave of complaints from within the travel sector, yesterday saw the introduction of the first of two increases to Air Passenger Duty (APD) at all airports in the UK.
Economy travellers must now add between £11 and £55 to the price of any flight leaving the UK, with more rises scheduled for November 2010.
The UK government has refused to explain how the money is being distributed, despite the controversial tax being presented as an environmental levy,
The new APD scheme is divided into four categories, or bands, based on to distance flown.
Band A is for cities located within 2,000 miles from London are taxed at £11, up from £10.
Band B is for destinations which are 2,001 – 4,000 miles from London and are the taxed at £45, up from £40.
Band C is cities which are 4,001 – 6,000 miles from the capital, and have gone up from £40 to £50.
Band D, the highest charging category, is for distances more than 6,000 miles from London, and passengers are now taxed a £55 levy.
For premium cabin passengers, all these fees are doubled.
According to Mark Tanzer, an official with the Association of British Travel Agents (ABTA), the APD increases will affect air travel employment and is set to be damaging the local economies which rely on tourist money both at home and abroad at a time when everyone is already hurting from the impact of the financial downturn.
The APD rises are said to also impact families in a hard way. For example, a family of four considering a holiday in Thailand will now have to find an extra £200 in order to afford their trip.
A Treasury official argued that the APD hikes will represent a key contributor to the government finances during the recession.
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