Henry Smith MP joined other parliamentarians and campaign representatives from the A Fair Tax on Flying campaign at their pre-Budget event in the House of Commons on Wednesday, 11th October.

The campaign is calling for a cut of at least 50 per cent in Air Passenger Duty (APD), the tax that the Government levies on passengers flying from UK airports.

 

Henry said;

“As the date of our departure from the EU gets ever closer, it’s vital that British business is ready for Brexit and that every possible encouragement is given to reach out to new and existing markets to increase trade. I’m supporting the call for a decisive cut of at least 50 per cent to this ‘Tax on Trade’.

“As a global island trading nation, a major aviation power and on the eve of Brexit, it makes sense that we should reduce our tax on flying to at least the level of our competitors – if not further.”

 

UK APD is the highest tax of its kind in any major economy. It is twice the rate applied in Germany which has the next highest rate in the EU. UK economy class flyers are hit with £75 per ticket on long-haul flights, and £13 per ticket on short-haul. For all other classes, the tax is £150 per long-haul ticket, and £26 per short-haul ticket.

The campaigners argue that APD is a tax on trade and that it should be halved as a sign that Britain is open for business as we approach Brexit. They claim the current high level of the tax makes UK businesses uncompetitive and that it hits families and the economy too by driving up the cost of holidays.

At the event, MPs were briefed by members of the campaign on the financial benefits that cutting APD would bring to the UK economy. Analysis by A Fair Tax on Flying, expanding upon previous reports undertaken by PwC in 2013 and 2015, suggests that cutting APD by at least 50 per cent could boost UK GDP by at least £5 billion in the first year, and by over £20 billion by 2022.

 

Dale Keller, spokesman for A Fair Tax on Flying, added;

“We welcome the support of Henry Smith MP in our campaign to reduce Air Passenger Duty.

“Currently, UK APD is among the highest tax of its kind anywhere in the world and is the highest in the EU. It puts the UK economy at a severe competitive disadvantage when compared to our European neighbours, and makes it harder for our airports to attract new routes to both traditional and emerging markets.

“It is nothing short of a ‘tax on trade’. If the UK Government wants to signal that a Brexit Britain is open for business, what better way than cutting this tax and providing a much-needed boost to our international and domestic connectivity.”

 

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www.youtube.com/HenrySmithMP

www.henrysmith.info

 

Notes:

 

About A Fair Tax on Flying

The A Fair Tax on Flying campaign is backed by ABTA, the Airport Operator’s Association, Airlines UK, the Board of Airline Representatives in the UK (BAR UK) as well as:

 

1. 1. American Airlines
   2. ANTOR
   3. BALPA
   4. Birmingham Airport
   5. Bristol Airport
   6. Emirates
   7. Gatwick Airport
   8. GTMC
   9. Heathrow
   10. International Air Transport Association (IATA)
   11. International Airlines Group (IAG)
   12. Newcastle International Airport
   13. Peel Airports
   14. Scottish Passenger Agents Association (SPAA)
   15. Thomas Cook Group
   16. Tourism Alliance
   17. Tui Group
   18. Unite the Union
   19. Virgin Atlantic Airways
   20. UKinbound
   21. UKinbound Scotland
   22. Visit USA

 

Air Passenger Duty

Currently, economy class passengers on long haul flights from most UK airports are charged £75 APD on their ticket, and those flying premium, business, and first class are charged £150.

This is more than double the next highest EU aviation tax which is levied in Germany and is £31.95 regardless of class of ticket.