UK government will increase air travel tax - Heathrow Airport News

Airport news for Heathrow on 23/04/2009.

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Although Chancellor Alistair Darling did not refer to the tax specifically when announcing the government’s budget on Wednesday, it will be increased in November this year and again next year.

The ABTA and other travel industry associations, along with airlines and travel agents, unsuccessfully urged the Chancellor to do away with the tax or to at least not increase it.

On flights to Europe, the tax will increase by 10 per cent this November, to £11 – and will rise to £12 next year.

US travellers, the key market for UK tourism, will pay £60 in 2010, as compared with the current £40.

Passengers on flight of over 6,000 miles – which includes the three key inbound markets of Australia, New Zealand and Malaysia – will be paying £85 in 2010, as compared with £40 currently.

Business travellers will be even more significantly impacted by the tax rise, as passengers in premium-class cabins will see increases of up to £170 in 2010.

ABTA chief executive Mark Tanzer said: “This unfair tax already costs air travellers from the UK £2 billion and covers its environmental costs. This holiday tax represents a heavy and growing burden on families at a time when they are being forced to reconsider whether they can afford to take a well-earned break.”

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