Planned APD rises

Air Passenger Duty is a tax paid by every air passenger departing Britain, figures show that this tax has risen by 325% in just four years. APD is worked out by a banding system, determined by the distance from London to the destinations capital city.

A family of four travelling on a flight of more than 6,000 miles, (for example to Malaysia, Indonesia or Australasia) will pay 340 in APD from November onwards which is up from 80 in 2006.

If they were to travel more than 4,000 miles (Caribbean, India, South Africa) APD is up from 80 to 300. Travelling 2,000 miles or more (Egypt, Dubai, USA) APD has gone from 80 to 240 and of distances less than this from 20 to 48.

If the family of four decided to upgrade to premium economy for extra leg room on a long haul flight, the fee, after November, will be 680 compared to 160 in 2006.

When APD was first introduced, the Government said that the money raised would be used to offset environmentally damaging carbon emissions, hence the so called green tax. Although many environmentalists are said to be dubious as to exactly how these extra costs will be beneficial to the environment.

The European Tour Operators Association has warned that London may loose its place as the main gateway to Europe with these increases in APD. Ultimately it will be seen as punishing people for choosing to come to the UK as visitors will pay tax on their return leg.

APD has been highly criticised by Ryanairs chief executive Michael OLeary stating Prime Minister Gordon Browns tourist tax will see Britain lose over 10 million passengers, 10,000 airport jobs and more than 2.5 billion in tourism spending. George Blundell-Pound, head of public affairs at ABTA has said, APD is the most bizarre and illogical legislation in my lifetime.