APD Tax - Hands off our holidays!

[kitch50]

Just had this email back from my MP :

Dear Ms Kitchin,

Thank you for writing to me about aviation tax and the ‘Hands off my Holiday’ campaign.

As the recovery in the world economy continues, I believe the aviation industry will continue to play a greater role in delivering future growth for the UK economy. Without continuous improvements in air travel, competitive and fair pricing in aviation and a balanced taxation system, the UK risks endangering future growth and prosperity.

As you may know, the Government announced in March that it would freeze air passenger duty (APD) rates for 2011-12, with the planned inflation increase deferred until April 2012. In addition, the Government is exploring changes to the aviation tax system and has recently held a consultation on the subject. Please be assured that the Government’s intention is to simplify the tax system for air transport services without hampering growth and to ensure that a fair contribution is made towards the public purse.

For the time being, it has been decided not to go ahead with a per-plane duty, given concerns over the feasibility of this approach, its impact on route viability and its interaction with aviation’s forthcoming inclusion in the EU Emissions Trading Scheme. The Government will, however, start a programme of intensive work with international partners to build consensus for a per-plane duty in the future.

I understand your concern about the impact of APD on family holidays. However, although APD is greater in the UK than some countries in Europe, unfortunately the deficit we have inherited makes tax reductions very difficult at this stage of the recovery process.

Both my colleagues in the Department for Transport and the Treasury are aware of the importance of aviation to the UK and the major role the industry plays in the country’s economy. I know that they are in discussions about how to formulate aviation policy and ensuring a fine balance is maintained between appropriate and fair taxation without restricting people’s freedom to travel.

I hope that you have found this useful. Thank you once again for taking the time to write to me.

Kind regards
Caroline

Caroline Dinenage
Member of Parliament for Gosport



House of Commons, London, SW1A 0AA
020 7219 7078

[fiona]

Our MP hasn't answered yet, but she might be a tad busy at the moment - Theresa May, Home Secretary. She is normally extremely good at responding, although I suspect she will be taking the official gov line!

[sammibabe]

surprise, surprise, mine hasn't either but that's nothing new with her

[Laurel Oak]

I had a reply from my MP stating he had referred my concerns to the Treasury and then a further reply enclosing a letter from Justine Greening which said:


"Thank you for your letter of 28 July to George Osborne enclosing correspondence from your constituent Mr Ian Bramley about Air Passenger Duty (APD). I am replying as the Minister responsible for this policy area.

As you may be aware, the Government has been keen to hear views on APD from the public and industry. Budget 2011 announced the launch of a consultation on the future structure of APD. The APD consultation ran until Friday 17 June 2011 and set out proposals for simplifying the current banding system and plans to extend APD to passengers aboard business jets, currently exempt from APD. The Government will consider the views and evidence submitted dy interested parties and publish a summary of responses in the autumn.

Some of the disparity Mr Bramley points to is in part due to a comparison of a family of four on current APD rates, against solitary travellers in other countries. Additionally it represents a partial picture, as some other countries charge VAT on air travel which we do not in the UK. The rate for more than 75% of passenger journeys is £12, which is the rate for economy travel within Band A (Europe and North Africa).

I understand how important these issues are for families and businesses and it is helpful to get your Mr Bramley's views.

Please pass on my thanks to Mr Bramley for taking the troble to make us aware of these concerns"


Doesn't look like anything is going to change but at least a reply from my MP and the Treasury.

[Jill]

Some of the disparity Mr Bramley points to is in part due to a comparison of a family of four on current APD rates, against solitary travellers in other countries. Additionally it represents a partial picture, as some other countries charge VAT on air travel which we do not in the UK. The rate for more than 75% of passenger journeys is £12, which is the rate for economy travel within Band A (Europe and North Africa).

.

Think there is some smoke and mirrors here by our good politicians - see the following article published earlier this year:

NEW plans to impose VAT on all flights from British and European Union airports could increase the cost of air travel by a fifth.
Currently all air and sea travel is exempt from VAT within the EU but a green paper, published last month, has recommended VAT be levied on all air and sea transport.

The proposal, which is now being considered by the European Commission, could see the cost of flights, ferry tickets and cruises increase by up to 20 per cent.
If proposals are given the green light, it would make air travel more expensive for passengers, who are already subject to Air Passenger Duty.

[ukman]

Done!!!

[Katys Grandad]

Some positive news on this today - from 2013 no APD will be payable on long-haul flights from Belfast.

Obviously a bit of a unique situation because so many NI people are using Dublin (where there's never been APD) so Belfast struggles to compete.