UK Needs to Consider Reform of Air Passenger Duty

September 9, 2015 Taxation in UK

LONDON – If the government of the UK doesn’t reduce the rates of air passenger duties, as many as 2.2 million passengers may chose to fly from airports in Scotland and Wales instead of England.

On September 8th the UK’s biggest travel association ABTA called on the national government to begin reducing Air Passenger Duties (APD), with the ultimate goal of abolishing the duty within five years.

The ABTA’s call comes as the government is looking at devolving APD powers in Wales, while the devolution of powers in Scotland is already scheduled.

Currently, the government of Scotland plans to half the rate of the APD when it receives the rate setting powers.

It is estimated that if Wales and Scotland both reduce the rate of APD, then passengers from the UK will be more likely to fly out of these countries instead of airports in England, ultimately resulting in as many as 2.2 million passenger opting not use airports in England.

The ABTA is not the only group to urge the government to reconsider changing the rate of the APD, with several groups claiming that the change is an opportunity for the government to overhaul the system and implement an efficient reform.

Photo By: Simon Allardice