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.”
Website users raised funds after Jennifer Lawrence nude photo leak
The Tardis-style house measures in at just 83 inches wide
- 1 David Sedaris: What I learnt from Fitbit about the world around me
- 2 Saudis risk new Muslim division with proposal to move Mohamed’s tomb
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Cee Lo Green: 'It's only rape if the victim is conscious'
- 5 Katie Hopkins in tears over weight gain challenge: ‘I hate fat people for making me do this’
Emma Watson on Jennifer Lawrence nude photo leak: 'Even worse than seeing women's privacy violated is reading the comments'
Jessica Brown Findlay: Downton Abbey actress is linked to list of celebrities targeted by hackers
Saudis risk new Muslim division with proposal to move Mohamed’s tomb
Ariana Grande nude photos leak: Pictures are completely fake, say representatives
Steven Sotloff 'beheading': British captive shown in Isis video which claims to show death of second US journalist
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
£28000 - £34000 Per Annum: The Green Recruitment Company: Job Title: Renewable...
£26000 - £34000 Per Annum: The Green Recruitment Company: Job Title: Energy Pr...
Competitive & Flexible: Randstad Education Cambridge: The JobRandstad Educatio...
Negotiable: Randstad Education Group: Randstad Education are looking for Teach...