Air Passenger Duty (APD) is an excise duty which is charged on the carriage of passengers flying from a United Kingdom airport on an aircraft that has an authorised take off weight of more than ten tonnes or more than twenty seats for passengers.
As part of the 2008 Pre-Budget Report, Air Passenger Duty was restructured.[1] These new charges take distance into account, making long distance flying significantly more expensive. Charges will rise on November 1, 2009 and again on November 1, 2010. Before this, Air Passenger Duty was controversially[2] doubled[3] from February 1, 2007, and the lower rate is to be extended to all the countries within the Single European Sky. This table summarises the changes:
| Old Rate | Previous rate | Feb 2007 - Oct 2009 |
|---|---|---|
| European destinations, lowest class | £5.00 | £10.00 |
| European destinations, other classes | £10.00 | £20.00 |
| Other destinations, lowest class | £20.00 | £40.00 |
| Other destinations, other classes | £40.00 | £80.00 |
Here, 'European destinations' includes countries in the European Economic Area and certain other European countries.
The distance used to calculate the new rate of APD is the distance between London and the capital city of the destination country as summarised below:
| New Rate | Nov 2009 - Oct 2010 (lowest) | Nov 2010 onwards (lowest) | Nov 2009 - Oct 2010 (other) | Nov 2010 onwards (other) |
|---|---|---|---|---|
| Band A (0 - 2000 miles) | £11.00 | £12.00 | £22.00 | £24.00 |
| Band B (2001 - 4000 miles) | £45.00 | £60.00 | £90.00 | £120.00 |
| Band C (4001 - 6000 miles) | £50.00 | £75.00 | £100.00 | £150.00 |
| Band D (over 6000 miles) | £55.00 | £85.00 | £110.00 | £170.00 |
The Treasury forecast the 2007 rise will cut carbon dioxide emissions by about 0.3 million tonnes a year by 2010-2011, and all greenhouse gas emissions by the equivalent of 0.75 million tonnes of carbon dioxide a year,[4] although that has been disputed.[5]
As air passenger duty is paid upon booking, but not collected until an occupied seat flies, should a passenger be unable to fly they have a right to claim the paid tax back from the airline, although many airlines will charge an administrative fee for this service. [1]
The tourist minister of Kenya, Najib Balala, criticised the Air Passenger Duty for hurting tourism and economy in developing countries [6].
References
- ^ "2008 Pre-Budget Report AIR PASSENGER DUTY (APD)". HMRC. 2008-11-24. http://www.hmrc.gov.uk/pbr2008/pbrn20.pdf.
- ^ "Air passengers react to tax hike". BBC. 2007-02-01. http://news.bbc.co.uk/1/hi/uk/6320197.stm.
- ^ "2006 Pre-Budget Report: Income tax allowances, national insurance contributions, child and working tax credit, fuel duty and air passenger duty rates". HM Treasury. 2006-12-06. http://www.hm-treasury.gov.uk/pre_budget_report/prebud_pbr06/press_notices/prebud_pbr06_press02.cfm.
- ^ "Pre-Budget Report 2006, Chapter 7" (PDF). HM Treasury. http://www.hm-treasury.gov.uk/media/571/CF/pbr06_chapter7.pdf.
- ^ "Taxes 'fail to curb travel CO2'". BBC. 2007-02-01. http://news.bbc.co.uk/1/hi/sci/tech/6311603.stm.
- ^ Daily Nation, October 8, 2009: Balala decries travellers' tax
See also
External links
- HM Revenue & Customs Notice 550 Air Passenger Duty
- Ryanair accuses Brown of 'scalping' flyers Guardian Unlimited
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