Thursday, 19 May 2011

Easyjet warns government on danger of rising air passenger tax

The low cost airline, Easyjet have warned that increases in aviation taxes will reduce UK airline passenger figures by 3 million and cut tourist spending by £475m a year.

The increase will see APD rise from £12 up to £16 per person with taxes at a lesser rate for long haul flights. This could see air passenger duty for an economy class flight to Australia fall from £85 to £65 per year.
Carolyn McCall, Easyjet's chief executive has called for taxes to be charged per plane that would favour more efficient aircraft. McCall claims that if this were to be done, it would favour four out of five UK passengers and encourage the industry to fly more efficiently.

The government did look at this approach but faced warnings about its feasability and legality. Projections show that the government hopes to increase revenue from APD from £2.2bn in 2010 to £3.1bn in 2013 and £3.6bn by 2016.

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