March 24, 2011 1 Comment
Chancellor of the Exchequer Chancellor George Osborne today told the House of Commons that there will be no increase in the Air Passenger Duty (APD) until 2012.
He also indicated that a consultation would commence straightaway to examine the efficacy of the current distance banding for assessing the duty.
“It is no doubt welcome news for the viability of the UK national transportation system and for foreign destinations heavily dependent upon British holidaymakers that the Air Passenger Duty will not be increased,” said Business Travel Coalition chairman Kevin Mitchell.
“However, the current levels of duty still represent a huge problem and they must be radically reduced to bring the UK back into competitive alignment with other countries for meetings, incentive trips and conventions. The next order of business is to expand the coalition of concerned parties outside the UK and deepen communications with UK government officials.”
The news should also be welcomed by Caribbean tourism stakeholders who say the tax is unfair.