Budget 2014: Air Passenger Duty reforms welcomed by airlines
Airlines welcomed reforms to the Air Passenger Duty on UK flights announced by the Chancellor in the Budget today.
The flight tax’s existing banding system sees travellers’ rate of APD calculated according to the distance between London and the destination country’s capital city.
That means flying 4500 miles to Jamaica costs £300 in APD while travelling 7000 miles to Hawaii sees the tax charged at £240.
But George Osborne announced a change to the banding rules so that all long-haul flights will now carry the same tax as a flight to the US.
He also slapped the tax on private jets, which had previously been exempt.
APD has risen by up to 470 per cent since 2007, with a family of four paying between £52 and £376 each time they fly from Britain, depending on how far they travel.
A Virgin Atlantic spokesman said: “This is a very welcome simplification to remove some of the biggest distortions of the current system, which the Chancellor himself admitted is crazy and unjust. The Government has rightly recognised the damage APD is having on exporters and the travelling public alike.
Read more Osborne warns of hard choices despite higher growth
New 12-sided pound coin announced
Stamp duty clampdown hits rich
Tax relief for regional theatre shows
Osborne reduces taxes on business investment
Summary of The Independent's Budget coverage
“A tax system which penalised high growth emerging economies such as China and India was always contrary to the Government’s stated policy on trade and exports, so this is a positive step that recognises the impact of this economically damaging tax.
“There is a growing body of evidence demonstrating the huge economic benefits to the UK of reducing or abolishing APD and we hope that the Government will continue to go further in the long run.”
- 1 Forget 'The Dress': Here are five of the biggest news stories you might have missed
- 2 The black and blue dress: Makers considering a white and gold version
- 3 PornHub turns masturbation into energy in bid to save the planet
- 5 MH370: 'Putin ordered plane to be flown to Kazakhstan space port,' conspiracy theory claims
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
PornHub turns masturbation into energy in bid to save the planet
Ukraine crisis: Top Chinese diplomat backs Putin, says West should 'abandon zero-sum mentality'
White and gold or blue and black – what colour is the dress? An eyewitness gives a definitive answer
Saudi Muslim cleric claims the Earth is 'stationary' and the sun rotates around it
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
This is what it's like to be dead, according to a guy who died for a bit
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
£18000 - £35000 per annum: Recruitment Genius: This company specialises provid...
Excellent Salary: Austen Lloyd: EXETER - A great new opportunity with real pot...
Excellent Salary: Austen Lloyd: EXETER - An outstanding senior opportunity for...
salary equal to £40K pro-rata: Sauce Recruitment: Are you available to start a...