22 FEBRUARY 2016
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The Airport Operators Association (AOA), the trade association, has urged the Government to use its upcoming Budget (16 March) to provide clarity to the future of Air Passenger Duty (APD).
Last July the Treasury announced that it was launching a review of APD in response to concerns expressed by English airports that the devolution of APD to Scotland, and potentially Wales, would result in competitive distortion and have a detrimental impact on businesses. It published a discussion paper which considered three options to support airports from the impacts of devolution: the devolution of APD within England; establishing variable rates of APD within England; and providing aid to regional airports within England.
Darren Caplan, chief executive of AOA, said: “Despite recent changes on the longest haul APD rates and the exemption for children, the UK still has the highest APD rates in the world. With the Budget due next month, we urge the Government to take this opportunity to reduce APD by at least half, so that the UK rate is no higher than that of our closest European competitors. Doing so would result in more people travelling, more jobs, more business and as a result higher tax revenues for the Treasury from the increased economic activity.”
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