ABTA is expecting Chancellor Rachel Reeves to announce a further increase in Air Passenger Duty (APD) in her first Budget on 30 October.
Director of Public Affairs Luke Petherbridge said the tax, which has been rising for the past few years, was almost certain to go up more.
Presenting at the Leaders in Travel Summit, hosted by travel accountants Xeinadin, Luke said: “I would expect we might see a slightly above inflation increase in APD this year.”
Speaking later to Travel Gossip, Luke said ABTA had warned the Treasury in its pre-Budget submission in September of the risks of increasing the tax. “It’s the fastest rising levy in the Treasury, and we’ve warned that if it keeps going up, travel will become unaffordable for many,” he said.
APD for domestic and short-haul economy flights (known as the ‘reduced’ rate) is currently £7 and £13 respectively, which is are due to remain the same from the start of the new tax year in 2025, but the previous Chancellor Jeremy Hunt increased the tax on longer flights and business and first-class seats from next April.
Luke said he was also expecting to see a rise in Capital Gains Tax, from a standard 10% or 20% (depending on income; 18% or 24% on property) to as much as 28% or 30% in the Budget, plus a rise in employers’ National Insurance Contributions.
He also warned of the risk of domestic tourism taxes being introduced in the UK over the next five years. “You might see tourism taxes or tourism levies spread across the UK,” he added.
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Director of Public Affairs Luke Petherbridge said the tax, which has been rising for the past few years, was almost certain to go up more.
Presenting at the Leaders in Travel Summit, hosted by travel accountants Xeinadin, Luke said: “I would expect we might see a slightly above inflation increase in APD this year.”
Speaking later to Travel Gossip, Luke said ABTA had warned the Treasury in its pre-Budget submission in September of the risks of increasing the tax. “It’s the fastest rising levy in the Treasury, and we’ve warned that if it keeps going up, travel will become unaffordable for many,” he said.
APD for domestic and short-haul economy flights (known as the ‘reduced’ rate) is currently £7 and £13 respectively, which is are due to remain the same from the start of the new tax year in 2025, but the previous Chancellor Jeremy Hunt increased the tax on longer flights and business and first-class seats from next April.
Luke said he was also expecting to see a rise in Capital Gains Tax, from a standard 10% or 20% (depending on income; 18% or 24% on property) to as much as 28% or 30% in the Budget, plus a rise in employers’ National Insurance Contributions.
He also warned of the risk of domestic tourism taxes being introduced in the UK over the next five years. “You might see tourism taxes or tourism levies spread across the UK,” he added.
The post Air tax likely to rise ‘slightly above inflation’ appeared first on Travel Gossip.
Continue reading...
