Air industry warns of double taxation on flights in 2012

Air industry warns of double taxation on flights in 2012

Air travel corporations have warned that passengers face a double taxation on flying when aviation enters the EU Emissions Trading Scheme in 2012. Although the industry has welcomed George Osborne’s freeze on APD until next year, BAR UK, the Airport Operators Association (AOA) and Peel Airports have urged the government to rethink, and therefore avoid, the two fees. “Many people aren’t aware that UK aviation is also joining the EU Emissions Trading Scheme (ETS) in 2012. This means that passengers will be subject to the costs of both ETS as well as aviation tax, so that holidaymakers and business travellers will effectively be paying double taxation next year,” explained Darren Caplan, chief executive of the AOA. “The Chancellor now needs to set out the government’s approach on reducing taxes on flying when the ETS comes in, otherwise passengers will simply be facing an actual tax increase later on in this 2011-12 financial year.” Craig Richmond, CEO of Peel Airports encouraged the industry to continue lobbying against the government. “This is only the beginning and we urge anyone who travels by air, both on business or leisure, to continue to lobby Government further,” he said. “Unlike the vast majority of European nations who experienced air passenger growth last year, the UK saw a decline. A ‘double taxation’ next year will simply deter even more passengers from flying to and from the UK in future.”

Gary Marshall
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Gary Marshall
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