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Air tax increase comes into force Air tax increase comes into force
(about 2 hours later)
Laws doubling the amount of passenger duty people pay when taking flights from the UK have come into force.Laws doubling the amount of passenger duty people pay when taking flights from the UK have come into force.
The increase was announced by Chancellor Gordon Brown last December. He said airlines should pay more for damaging the environment.The increase was announced by Chancellor Gordon Brown last December. He said airlines should pay more for damaging the environment.
Hundreds of thousands of people have been asked to pay extra duty, despite buying tickets before the announcement.Hundreds of thousands of people have been asked to pay extra duty, despite buying tickets before the announcement.
While the new tax is only payable on flights from UK airports, passengers face paying twice on internal flights.While the new tax is only payable on flights from UK airports, passengers face paying twice on internal flights.
Airlines said they were not expecting major problems in collecting the higher rates of air passenger duty.Airlines said they were not expecting major problems in collecting the higher rates of air passenger duty.
Those who have not paid so far will have to do so at airports before flying.Those who have not paid so far will have to do so at airports before flying.
Despite some predictions of chaos, most airlines are - at least in public - expressing confidence that there will be few hold-ups.Despite some predictions of chaos, most airlines are - at least in public - expressing confidence that there will be few hold-ups.
"The vast majority of passengers have now paid," said an Easyjet spokeswoman."The vast majority of passengers have now paid," said an Easyjet spokeswoman.
Laws criticisedLaws criticised
The Treasury brought in the rises after accusing the aviation industry of not meeting its environmental costs.The Treasury brought in the rises after accusing the aviation industry of not meeting its environmental costs.
NEW DUTIES Economy class flights in Europe, including internal UK flights: £10Business and first class flights in Europe: £20Economy class long-haul flights: £40Business and first class long-haul flights: £80 How the airlines are reacting Is the new tax affecting you? Q&A: Air tax risesNEW DUTIES Economy class flights in Europe, including internal UK flights: £10Business and first class flights in Europe: £20Economy class long-haul flights: £40Business and first class long-haul flights: £80 How the airlines are reacting Is the new tax affecting you? Q&A: Air tax rises
But the move has failed to impress environmental groups, airlines or passengers.But the move has failed to impress environmental groups, airlines or passengers.
Mike Carrivick, chief executive of the airline trade body the Board of Airline Representatives, said the tax was purely a money-grabbing exercise.
"At the moment Parliament has not even discussed the issue, but it has been made very clear to us that when it does it (the tax) would be made retrospective," he said.
"That places the industry in a very invidious position - it lays us open to a liability of well over £100m."
Friends of the Earth was hoping for a bigger increase, while the British Air Transport Association said the rises would do nothing to tackle emissions.Friends of the Earth was hoping for a bigger increase, while the British Air Transport Association said the rises would do nothing to tackle emissions.
The Treasury hoped the airlines would foot the bill for the rise, describing it as a tax on airlines for the number of passengers they carry - not a tax on passengers. British Airways has absorbed the £11m cost of the increase for those travellers who bought tickets before last December's announcement, for travel from 1 February onwards.
British Airways has absorbed the £11m cost of the increase - but most airlines passed on the charges to their customers. But other airlines are passing on the tax to their customers.
Collection tacticsCollection tactics
All airlines, whether UK-based or not, are obliged to collect the tax for each passenger they fly out of the country.All airlines, whether UK-based or not, are obliged to collect the tax for each passenger they fly out of the country.
The big fear for the airlines was that some customers would turn up completely unaware they have to pay.The big fear for the airlines was that some customers would turn up completely unaware they have to pay.
The ultimate sanction in our terms and conditions is to refuse to carry them BMI spokesman Green taxes 'will fail'The ultimate sanction in our terms and conditions is to refuse to carry them BMI spokesman Green taxes 'will fail'
Many have been sending e-mails to their passengers, or have arranged to collect the fee from customers' credit cards.Many have been sending e-mails to their passengers, or have arranged to collect the fee from customers' credit cards.
But the airlines have also prepared for the possibility of collecting cash directly at the airport.But the airlines have also prepared for the possibility of collecting cash directly at the airport.
BMI said it had a leaflet which explained the situation.BMI said it had a leaflet which explained the situation.
"The ultimate sanction in our terms and conditions is to refuse to carry them," a BMI spokesman said."The ultimate sanction in our terms and conditions is to refuse to carry them," a BMI spokesman said.
That is the view of all the airlines which have decided to pass on the tax - no payment, no flight.That is the view of all the airlines which have decided to pass on the tax - no payment, no flight.