UK travel association welcomes freeze on APD

Published on : Friday, November 24, 2017

UK travel associationTravel trade association UKinbound welcomed this week’s budget decision to freeze Air Passenger Duty (APD) on short and long-haul economy flights.

The government said the move on air tax means that 99 per cent of passengers coming to the UK will not see a rise in APD, with the move balanced by a rise for premium fares on long-haul routes.

The Chancellor also announced a review of tourism VAT for Northern Ireland following Brexit.

“It’s encouraging to hear APD feature on the government’s agenda and that this tax on trade will be frozen on all short-haul and long-haul economy flights,” said UKinbound CEO Deirdre Wells.

“We’re also pleased to hear that a review will be undertaken regarding the impact of APD and VAT on tourism in Northern Ireland. However, APD’s detrimental effect on businesses across England, Scotland and Wales should also be investigated,” Wells added.
For Northern Ireland – the only part of the UK sharing a land border with another state – tourism-related businesses pay a 20 per cent VAT tax, more than double that of the neighbouring Republic of Ireland, which only pays a nine per cent tax, putting the north at a significant disadvantage.

“The government’s commitment to a Brexit-ready Britain will be undermined if the review does not cover all four corners of the UK.”

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