APD rise comes in
01.11.09
The first of two planned rises in Air Passenger Duty (APD) came into effect today, adding up to £30 to the cost of a flight. Previously there were two APD bands, with one for short haul flights and another for long haul flights. However, from today it is now divided into four distance bands, with the tax on the shortest flights rising by £1, and the amount paid by business and first class passengers on flights over 6,000 miles going up from £80 to £110.
The duty on economy class flights was previously £10 for short haul flights of up to 2,000 miles and £40 for long haul. Business and first class paid £20 and £80 respectively. However, from today the cost of APD for flights less than 2,000 miles in economy class will now be £11, with duty on premium tickets £22.
For journeys of between 2,001 and 4,000 miles the tax will be £45 in economy class and £90 for other seats. For journeys of between 4,001 and 6,000 miles, the tax is £50 in economy and £100 in premium classes. And flights of more than 6,000 miles, APD will be £55 and £110 respectively.
Further rises will come into force in November next year. From November 2010, the tax will rise again, with economy class passengers on the shortest flights charged £12, and premium class tickets on the longest flights paying as much as £170 in APD.
The Government has cited environmental reasons for the rise, but airlines point out that the tax revenues are not ringfenced to be used for environmental purposes, far exceed the carbon cost of flying and they are worried about the effect on the aviation business in a recession.
A spokesman for the Treasury said: ‘The Government maintains that air travel should pay its fair share in tax. APD is an important contributor to the public finances, while helping the Government to achieve its environmental goals.’
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