AIR PASSENGER DUTY (APD) & AVIATION TAXES

APD was introduced in 1994 and has seen several increases since. 

For travel on or after 1 November 2009

There are four geographical bands based on the distance from London to the capital city of the country concerned (with the exception of the Russian Federation which is split east and west of the Urals):

Rates of duty for 2009-10 and 2010-11 are as follows:

Full details, including the tables specifying which countries and territories fall into each of the new APD bands, can be found at www.hmrc.gov.uk/pbr2008/pbrn20.pdf. 

Emissions Trading Scheme

The 2003 Aviation White Paper contained the Government’s views on how aviation should meet its environmental costs, with preference given to a scheme of global emissions trading.

About emissions trading

ABTA’s Position

ABTA accepts that aviation should pay its proper environmental cost; however, that cost is reflected in the current APD level. ABTA has always supported the airline lobby that emissions trading is the most appropriate solution and should eventually replace APD. ABTA is part of the Flying Matters coalition and Responsible Air Travel Alliance, both arguing against further taxation of air transport. ABTA believes the general public must not be disenfranchised by using economic instruments as a means of raising costs of aviation. 

In January 2008, the Treasury/HMRC launched a consultation to move to a per aircraft Aviation Duty to replace APD, to take effect 1 November 2009. They suggested that the basis was a combination of maximum take-off weight of the aircraft and a distance factor. ABTA was in favour of the principle of Aviation Duty in that it benefited those airlines who operate full aircraft.  However, the proposed duty provided no incentive to airlines to invest in more efficient aircraft.

ABTA was disappointed that the Government has chosen to continue with APD. With the new APD bands, ABTA is concerned that the increase will put off travellers to destinations such as the Caribbean and Kenya, whose economies are extremely dependent upon tourism as well as the popular VFR markets of Australia and New Zealand. 

ABTA also notes with concern that the Government proposes continuing with an element of APD once aviation joins the ETS in 2012. The Government admits that APD is revenue-raising in addition to addressing environmental costs. We remain of the view that British travellers should not be penalised by a form of double taxation.

ABTA is campaigning vigorously with its trade partners to have APD frozen at the November 2009 levels pending introduction of the ETS in 2012.

Last updated: 13 November 2009