Chancellor to freeze passenger flying tax - Car Rental News
Chancellor to freeze passenger flying tax
Car Rental News - 21/03/2011
Travellers will get a little boost this week when the budget brings a freeze in air passenger duty.
The Chancellor, George Osborne, is widely-expected to announced a freeze on further increases to the air passenger duty in his budget on Wednesday. Campaigners across several industries have warned Osborne of the dangers of increasing APD any further.
Already, the UK’s air travel tax on passengers makes the cost of long-haul holidays out of Britain hundreds of pounds dearer than they otherwise would be. The news of an anticipated freeze to APD came out yesterday.
The Chancellor also hinted that he could delay a further increase in duty on petrol. He said the UK should not be worried about the prospect for any big new tax increases or more budget cuts, following those announced in the budget last year.
The normal increase in APD linked to inflation would have added another £140 million to the government’s annual revenues. The rate of increase normally linked to the Retail Prices Index (RPI).
Increase APD again in line with RPI would have seen the £12 charge levies on an economy flight from the UK to Europe rise by another £1. For a flight to the USA, a typical increase in APD would have added £3 to the existing average of £60.
Despite the news that APD will be held at the current level, travellers still have to foot the cost of increase fuel tax surcharges. The Chancellor has also said that he is looking closely at delaying the scheduled 1 pence per litre increase in fuel duty.