Air Passenger Duty should be abolished ahead of the introduction of the European Emissions Trading Scheme (EU-ETS) next year. The call came from the World Travel and Tourism Council in the wake of the freeze on APD in the Budget.
The influential tourism body said by not scrapping APD, the Government will force British holidaymakers and business travellers to ‘fly once, but pay twice’ when EU-ETS comes into force. It will hit people’s wallets and their ability to take a break at a time when government austerity measures are already impacting their lives, according to the WTTC.
President and chief executive David Scowsill said: “APD has always been a blunt instrument and a bad tax. Whether in its current per-passenger form or as a per-plane version, it is bad for the consumer and bad for the international competitiveness of UK plc.
“The advent of the European Emissions Trading Scheme is an ideal opportunity for government to scrap it entirely. It is time to admit that APD has failed to offset any environmental impact from people’s travel.”
The European Emissions Trading Scheme is much fairer and more effective in incentivising the use of cleaner, ‘greener’ transport, while APD simply raises money for Treasury coffers with no evidence that it offsets the environmental cost of travel, the global industry body claimed.
“Despite economic growth facing many challenges, the travel and tourism industry is still expected to be one of the world’s fastest growing sectors,” said Scowsill. “But it must have clear support with governments investing in far smarter policies if its full potential to create jobs, increase exports and stimulate investment is to be realised. If the Chancellor really seeks a ‘Budget for growth’ then it’s time to turn to tourism.”
A coalition of travel industry compaines and bodies has come together to highlight the level of taxes on aviation and demand A Fair Tax On Flying, concerned that the quantum of taxes on aviation are damaging the travel sector which is seen as an easy source of revenue by the government.