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Chancellor abolishes air passenger duty

In an attempt to gain the upper hand on the green agenda and reduce carbon emissions, Alistair Darling has announced in his Pre-Budget Report that from November 2009 Air Passenger Duty (APD) will be replaced by a duty payable per plane rather than passenger.

The move has been broadly welcomed by travel experts and accountants. Maurice Fitzpatrick, a tax expert at Grant Thornton said believes that "the move away from APD makes an awful lot of sense to encourage good behaviour and punish bad. APD was not particularly effective – only accounting for 1/17th (£2.1bn pa) of green tax yield, whereas this new reform will bring in an additional £520 million a year".

Fitzpatrick believes that "the new duty levied will not directly impact how often a passenger jets off to the sun, but may reduce his choice of destination and flight times as airlines are forced to up their game in filling every seat on the routes carried".

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Post Date: October 10th, 2007