Friday, 2 December 2011

Passengers to pay additional tax on flights already purchased

Following on from George Osborne's speech this week, it has been announced that passengers who have already bought tickets which depart after 1st April 2012 will be required to pay the additional APD on their fares.

Airlines are expected to collect the money from passengers and the cost will depend on flight duration and class of travel. APD on economy short-haul flights will rise £1 from £12 to £13. Tax on destinations in Band B will increase £5 from £60 to £65. APD on flights to destinations such as the Caribbean and Thailand will increase £6 from £75 to £81. The destinations furthest afield will be required to pay £7 extra if they have an economy class ticket.

Passengers in premium classes will be required to pay double these rates.

Commenting on the issue, Julie Southern of Virgin Atlantic said - “It’s completely unacceptable that millions of passengers now face an additional tax bill on tickets they have already paid for. We have been warning the government for months of the impact this will have and urged them to avoid this unnecessary situation. Hundreds of thousands of passengers have already booked travel with us after April 1, meaning millions across the industry are likely to be impacted. People would never be expected to pay extra duty for the petrol already in their cars or wine in their fridge. Why does the Treasury think it acceptable to retrospectively charge airline passengers?”

What do you think? Will the coalition get another term at this rate? They seem to be upsetting just about every section of society!