17 FEBRUARY 2020

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Article from BTNews 17 FEBRUARY 2020

ABTA calls for wider APD reform

A “meaningful reform” of Air Passenger Duty (APD) to maintain the UK’s global competitiveness and support the country’s net zero carbon emissions target by 2050 was called for last week by ABTA.

In a letter to the Treasury ahead of the March budget, the association welcomed the government’s pledge to review the relationship between APD and regional connectivity to ensure vital regional links in the UK are maintained.

However, it added, the review should be part of a wider reform process as the catalyst for constructive discussions between industry and government about a more comprehensive overhaul of the structure of the tax.

ABTA’s letter noted that APD, in its current form, is not and has never been an environmental tax; it does not incentivise cleaner, greener, practices by airlines or passengers, and the revenue does not support the UK’s transition from carbon.

CEO Mark Tanzer said: “Reform in domestic duty at the expense of international duty without a wider review would undermine the UK’s international competitiveness and cause fares to rise while failing to address pressing environmental priorities.

“Meaningful reform, delivered in partnership with the industry, can maintain the country’s global competitiveness and support the government’s commitment to lead the world on reducing carbon emissions.”

www.abta.com

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