THE travel
industry cheered Chancellor Gordon Brown’s announcement that Air Passenger Duty
has been slashed to key holiday destinations.
Brown’s
announcement in the budget that APD would be reduced to Turkey, Malta and
Cyprus from £20 to £5 for economy flights and from £40 to £10 for business
fares was praised by the industry. Switzerland and eastern European countries
bidding to join the EU, like Poland and the Czech Republic, also had APD
reduced on flights from the UK.
The new
rates start on November 1.
Federation
of Tour Operator’s general secretary Alan Flook said: “We are very pleased.
This is significant for those countries which are very price sensitive, it is
rare to get reductions in cost.”
ABTA head
of policy Stephen Alcock welcomed the move on APD, but also said flat VAT
payments for companies with turnover of less than £100,000 rising to £150,000
next April, was beneficial. Firms will save £1,000 in accountancy fees.
“The small
company tax rate dropping 20p to 19p is also helpful,” said Alcock.
However,
he said the 1% increase in National Insurance contributions next April may hit
people planning holidays.