UK Coalition Government Talks Air Passenger Duty Changes

The UK Government is wasting no time in talking about the possibility of changing the wildly unpopular Air Passenger Duty tax. Apparently this is something that is going to be talked about in the emergency budget.

While addressing the House of Commons, chancellor of the exchequer George Osborne suggested that the government should be willing to explore changes to this aviation tax system. He said that the changes could include switching the tax from a per passenger to a per plane duty. This could help to encourage fuller planes. All major changes would follow public consultation.

The ABTA chief executive, Mark Tanzer, said that the idea to change the tax is broadly welcomed. It is now up to everyone to makes sure that full and very detailed discussions with government ministers and civil servants take place before George Osborne reports back in autumn. It is essential that the levels and the mechanisms are set correctly so that people are not taxed out of flying.

Of course, the airline industry was quick to point out the significance that the travel sector has on the UK economy. The aviation industry contributes more than £11 billion to GDP. Also, some 700,000 British jobs are dependent on the aviation industry.

Industry insiders have accused the government of kicking the issue into the background. They said that, with a consultation now underway, the planned Air Passenger Duty rise that is scheduled for this November will likely come into force. Low cost carrier easyJet argued that the decision was the start of the process of reforming the draft Air Passenger Duty.