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):
| Band A | 0–2,000 miles from London | |
| Band B | 2,001–4,000 miles from London | |
| Band C | 4,001–6,000 miles from London | |
| Band D | over 6,000 miles from London |
Rates of duty for 2009-10 and 2010-11 are as follows:
| Band | Reduced Rate | Standard Rate | ||||
| 2009-10 | 2010-11* | 2009-10 | 2010-11* | |||
| Band A | £11 | £12 | £22 | £24 | ||
| Band B | £45 | £60 | £90 | £120 | ||
| Band C | £50 | £75 | £100 | £150 | ||
| Band D | £55 | £85 | £110 | £170 | ||
*takes effect 1 November 2010
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.
In the Emergency Budget on 22 June 2010 the Government announced a consultation into replacing APD by a per plane duty (PPD). Indications are that this will be launched in October. Proposals in 2008 by the previous Government on a per plane duty came to nothing and it isn't currently known what form the new proposals might take.
Forecasts up to 2015-16 indicate APD will continue to rise from the £1.9bn in 2009-10 to £3.8bn in 2015-16 and, crucially, that UK aviation tax will continue to rise even when aviation joins the EU ETS in 2012.
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 has expressed great concern that the APD bands based on the distance from London to the capital city are illogical from an environmental perspective and would 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 has campaigned vigorously with its trade partners to have APD frozen at the November 2009 levels pending introduction of the ETS in 2012. ABTA believes the general public must not be disenfranchised by using economic instruments as a means of raising costs of aviation. Tax rises are socially regressive and will impact most upon those who can least afford it and lead to families being priced out of taking flights. This is especially acute for lower socio-economic groups and ethnic minorities visiting friends and relatives abroad.
ABTA accepts that aviation should pay its proper environmental cost; however, that cost is reflected in the current APD level. ABTA notes with concern that the Government proposes continuing with an element of APD once aviation joins the ETS in 2012. We remain of the view that British travellers should not be penalised by a form of double taxation.
ABTA welcomed the Government's June 2010 announcement to examine aviation taxes but has highlighted concerns over the level of taxation. We believe that APD should be replaced with a Per Plane Duty (PPD) - a fair tax based on efficiency of aircraft and more closely aligned to the distance travelled. We support a small number of exemptions for military, diplomatic, emergency and lifeline services but believe the current exemption for corporate jets should be removed. We will continue to encourage scrapping this tax when aviation joins the EU ETS.
ABTA has asked Members to raise aviation duty with their MPs seeking their support for PPD and the negative impact upon their constituents should the level be increased any further.
Last updated: 27 July 2010
