3 DECEMBER 2012

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Article from BTNews 3 DECEMBER 2012

APD decision day

With the hours ticking away until UK Chancellor George Osborne delivers his Autumn Statement, the Airport Operators Association and A Fair Tax On Flying campaign have issued a joint statement detailing what might happen if he were to go ahead with plans to increase Air Passenger Duty (APD).  Basically it suggests that instead of increasing revenue it will reduce this revenue source to the Government with serious knock-on effects.

There is growing pressure for the Treasury to commission an impact-assessment of APD.

  • 200,000 people wrote to MPs this summer calling for an economic impact-assessment of APD.
  • 90,000 overseas travellers have contacted the Treasury directly, with the same message.
  • 100 MPs – including 97 who signed an Early Day Motion (EDM 174) – are backing calls for a review.
  • The all-party parliamentary group (APPG) on aviation published a report, following an in-depth inquiry, which recommended a joint industry-Treasury impact-assessment.
  • In a Commons debate on APD on 1 November, 35 MPs expressed their concerns about current levels of the tax.  The motion calling for a comprehensive review of APD passed unanimously.

Many European countries including Belgium, Holland and Denmark have abandoned their aviation taxes, due to the negative effect on their economies. www.aoa.org.uk www.afairtaxonflying.org

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