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Holiday firms warn over 55% Air Passenger Duty rise Holiday firms warn over 55% Air Passenger Duty rise
(about 1 hour later)
Air taxes are to rise by up to 55% on Monday, making some trips unaffordable, the travel industry has warned.Air taxes are to rise by up to 55% on Monday, making some trips unaffordable, the travel industry has warned.
A family of four flying in economy to Australia will now pay £340 in total taxes - an extra £120.A family of four flying in economy to Australia will now pay £340 in total taxes - an extra £120.
The same family to the US will pay 33% more Air Passenger Duty (APD), up £60 to £240. APD on premium class fares is double that of economy.The same family to the US will pay 33% more Air Passenger Duty (APD), up £60 to £240. APD on premium class fares is double that of economy.
Sir Richard Branson's airline Virgin Atlantic said the rise would put annual family holidays out of reach for many.Sir Richard Branson's airline Virgin Atlantic said the rise would put annual family holidays out of reach for many.
'Negative effect' 'Huge driver'
Virgin Atlantic's chief commercial officer Julie Southern said: "Holidays are an essential part of our lives and are valued even more in these difficult economic times. Virgin Atlantic chief commercial officer Julie Southern told the BBC: "Air Passenger Duty has risen three times in recent years, and what we're saying very clearly to the government is enough's enough.
"With passengers now being asked to pay up to 10 times more tax since APD's introduction, the annual family holiday will become unaffordable for many." "This is not just about people travelling on holiday, this will also affect tourists coming to the UK who will pay this tax on departure.
She added: "Our message to government is that this absolutely has to be the last time that the travelling public faces APD rises." "We know that tourism is a huge driver of economic growth in the UK, so we really shouldn't be disincentivising people from visiting us."
British Airways chief executive Willie Walsh has called the tax a "disgrace" and travel industry body Abta continues to lobby ministers in protest at the APD rises. British Airways chief executive Willie Walsh said the increases would cost BA an extra £100m and put more pressure on ticket prices.
Mr Walsh said the increases would cost BA an extra £100m and would put more pressure on ticket prices. He said: "I think these taxes are a disgrace. I don't think they can be justified at any level.
"We believe the levels cannot be justified and are having a negative effect on the economic recovery in the UK," he said. "My concern around the taxes is the damage that they're doing to the UK economy.
"The government can clearly identify how much money they're raising but I've challenged the Treasury to calculate how much the economy is losing out as a result of making the UK a much more expensive place to do business."
Budget airline Easyjet said APD was a "bad environmental tax" because it did not link the level of tax with emissions.
Chief executive Carolyn McCall said: "The government should reform Air Passenger Duty to make it fairer for the public and to encourage greener behaviour by airlines.
"APD is already higher in the UK than anywhere else in Europe, and UK passengers and the environment would be better off if the tax was shifted from per person to a per plane tax."
Travel industry body Abta is continuing to lobby ministers in protest at the duty rises.
'Complete revamp''Complete revamp'
The cost of APD for flights of less than 2,000 miles in economy class will remain at £11, with duty on premium tickets frozen at £22. The cost of APD for flights under 2,000 miles in economy class will remain at £11, with duty on premium tickets frozen at £22.
For journeys of between 2,001 and 4,000 miles the price will be £60 in economy class and £120 for other seats.For journeys of between 2,001 and 4,000 miles the price will be £60 in economy class and £120 for other seats.
For journeys of between 4,001 and 6,000 miles, the price is £75 in economy and £150 in premium classes. And flights of more than 6,000 miles will cost £85 and £170 respectively.For journeys of between 4,001 and 6,000 miles, the price is £75 in economy and £150 in premium classes. And flights of more than 6,000 miles will cost £85 and £170 respectively.
The mileage limits are just a rough guide as, for example, all trips to the US fall within one band, while those to the Caribbean are charged at a higher rate.The mileage limits are just a rough guide as, for example, all trips to the US fall within one band, while those to the Caribbean are charged at a higher rate.
It means that people flying eight hours to Barbados, for example, will pay £15 more tax - £30 for those in premium seats - than those heading four hours further to Los Angeles.It means that people flying eight hours to Barbados, for example, will pay £15 more tax - £30 for those in premium seats - than those heading four hours further to Los Angeles.
Bob Atkinson, from the travelsupermarket website, said: "The tax bands aren't consistent. APD is a flat tax and is therefore regressive. The tax should apply to the actual mileage or as a percentage of the total paid.Bob Atkinson, from the travelsupermarket website, said: "The tax bands aren't consistent. APD is a flat tax and is therefore regressive. The tax should apply to the actual mileage or as a percentage of the total paid.
"There needs to be a complete revamp of the APD scheme. It should be replaced by a per plane tax so that we can then see the environmental efficiency of each airline and their aircraft.""There needs to be a complete revamp of the APD scheme. It should be replaced by a per plane tax so that we can then see the environmental efficiency of each airline and their aircraft."
The government has cited environmental reasons for recent APD rises, saying they are an important contributor to the public finances, and help it achieve its green goals.The government has cited environmental reasons for recent APD rises, saying they are an important contributor to the public finances, and help it achieve its green goals.
APD, an airport departure tax, is automatically added to the ticket price when it is booked.APD, an airport departure tax, is automatically added to the ticket price when it is booked.
Will you be affected by the rise in air tax? What do you think of the changes? You can send us your views and experiences using the form below.Will you be affected by the rise in air tax? What do you think of the changes? You can send us your views and experiences using the form below.
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