A report by a cross-party group of British MPs, the All-Party Parliamentary Group for Air Passenger Duty Reform, has urged the government to drastically cut or scrap the UK’s aviation taxes if the economy is to thrive after Brexit, the Telegraph newspaper has reported.
APD is the highest tax of its kind in Europe, more than twice the size of second-placed Germany, the group claimed, and cutting it would encourage carriers to launch dozens of new routes.
The duty currently adds GBP13 British pounds (USD15.67) to every short-haul fare, GBP78 (USD94) to long-haul economy-class fares, up to a maximum of GBP176 (USD212) for first or business class on long-haul flights. The short-haul rate has more than doubled since it was first introduced in 1994, the report said, and the long-haul rate is almost seven times as high.
As part of the evidence-gathering process behind the report, a survey was made of airlines operating in the UK. More than two-thirds of the carriers questioned said they would invest in new routes outside London and southeastern England if APD was cut by 50%. Nine out of ten promised to invest more in existing routes.
“APD runs counter to many of the government’s stated priorities, including increasing exports and creating jobs; its removal will give Britain’s aviation sector the chance to flourish once more, boosting connectivity and driving economic growth,” the report concluded.
“We have the highest aviation taxes in Europe, and this is simply not sustainable and runs counter to the government’s aims for a truly global Britain. We are calling for the Chancellor to act decisively and remove this barrier to growth by cutting APD by at least 50% to ensure that Britain has a flying start to our post-Brexit future,” Conservative MP Henry Smith said as the report was released.
