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Airlines call for rethink on tax | Airlines call for rethink on tax |
(about 6 hours later) | |
The world's airline industry is urging the UK government to abandon a rise in air passenger duty, which would mean long-haul flight prices rising. | |
The International Air Transport Association warns the levy is damaging an industry already on its knees. | The International Air Transport Association warns the levy is damaging an industry already on its knees. |
Britain is the only place to have such a tax and the Treasury now wants to base it on how far people fly. | Britain is the only place to have such a tax and the Treasury now wants to base it on how far people fly. |
Ministers say flying is relatively "undertaxed" and the changes "better reflect the environmental costs". | Ministers say flying is relatively "undertaxed" and the changes "better reflect the environmental costs". |
The duty is currently £10 for short-haul flights and £40 for longer journeys, costs which airlines pass on to passengers. | The duty is currently £10 for short-haul flights and £40 for longer journeys, costs which airlines pass on to passengers. |
Under the government's plans, the tax will rise to £85 for Australia and £60 to the US by November next year. | Under the government's plans, the tax will rise to £85 for Australia and £60 to the US by November next year. |
'Survival mode' | 'Survival mode' |
The International Air Transport Association (IATA), which represents the world's airlines, has described the tax as "irresponsible". | The International Air Transport Association (IATA), which represents the world's airlines, has described the tax as "irresponsible". |
Giovanni Bisignani, of IATA, said: "We are in survival mode... we don't understand why the UK is still insisting with an air passengers duty that has nothing to do with the environment." | Giovanni Bisignani, of IATA, said: "We are in survival mode... we don't understand why the UK is still insisting with an air passengers duty that has nothing to do with the environment." |
The industry aimed to become carbon neutral by 2020, he said. | The industry aimed to become carbon neutral by 2020, he said. |
It is a crazy tax that the government should scrap Julia Simpson, British Airways | It is a crazy tax that the government should scrap Julia Simpson, British Airways |
The airlines and unions are united in calling for a government re-think. | The airlines and unions are united in calling for a government re-think. |
They say it will put tens of thousands of jobs at risk and damage the UK's position as a global hub as more passengers start to use European airports where there is no tax. | They say it will put tens of thousands of jobs at risk and damage the UK's position as a global hub as more passengers start to use European airports where there is no tax. |
There are 200 fewer routes operating from the UK this summer compared to last. | There are 200 fewer routes operating from the UK this summer compared to last. |
Green tax | Green tax |
Julia Simpson, head of corporate communications at British Airways, said: "It is a crazy tax that the government should scrap. | Julia Simpson, head of corporate communications at British Airways, said: "It is a crazy tax that the government should scrap. |
"A family of four travelling to Australia is going to be facing a bill of £340 before they have set foot on the plane and paid for their tickets." | "A family of four travelling to Australia is going to be facing a bill of £340 before they have set foot on the plane and paid for their tickets." |
But Darren Johnson, from the Green Party, said it was a good thing if people were discouraged from flying. | But Darren Johnson, from the Green Party, said it was a good thing if people were discouraged from flying. |
"We need to be increasing the air passenger duty," he said. "Aviation is simply not paying its way in terms of the environmental damage it causes." | "We need to be increasing the air passenger duty," he said. "Aviation is simply not paying its way in terms of the environmental damage it causes." |
A Treasury spokesman said: "Flying is relatively undertaxed, with no VAT on tickets or duty on aviation fuel. | A Treasury spokesman said: "Flying is relatively undertaxed, with no VAT on tickets or duty on aviation fuel. |
"The changes to aviation duty better reflect the environmental costs of flying and help ensure that aviation contributes its fair share to public services." | "The changes to aviation duty better reflect the environmental costs of flying and help ensure that aviation contributes its fair share to public services." |
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