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Budget 2011: APD still flawed, says BAR UK

The Board of Airline Representatives claims the government is still not listening to the industry’s calls for a fairer tax despite its decision not to increase Air Passenger Duty this year.

BAR UK, which represents 86 airlines, welcomed the decision to delay any increase in aviation taxes utnil 2012, announced by chancellor George Osbourne in today’s Budget speech.

But chief executive Mike Carrivick said: “The chancellor’s decision not to increase APD is a welcome development but does not go far enough.

“The UK travel industry already pays the highest aviation taxies in Europe and the existing APD levels do not take into account the EU Emissions Trading Scheme which airlines will pay into from January 2012. Other EU countries have reduced or are removing existing taxes prior to the introduction of the EU ETS.”

The tax would deter visitors from coming to the UK for the Olympics and Paralympics in 2012, he added.

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