Air Passenger Duty to go

The Chancellor unveiled plans to replace Air Passenger Duty APD with a new per plane duty which will take effect from 1 November 2009. The new per plane aviation duty will he claimed send an improved signal of environmental costs and ensure aviation makes a greater contribution to covering its environmental costs.

No detail of the proposed new duty was given the Government plans to work closely with industry and stakeholders to consult on the detail of this tax and will begin a consultation shortly. This consultation will consider ways to make aviation duty better correlated to distance travelled and ways to encourage more planes to fly at full capacity.

Ahead of the change with effect from 1 November 2008 the Government will also correct an anomaly to ensure passengers on business class only flights are liable for the standard rates of Air Passenger Duty. In the meantime Air Passenger Duty will be frozen at its current rates for 2008 2009.

09 October 2007 Moneyextra.com

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