The level of taxation through Air Passenger Duty on travellers to the Caribbean is “something of a disgrace”, according to Virgin Group chairman Sir Richard Branson.
He said any future increase in APD would be “ridiculous” and said Virgin was lobbying hard to get the level to the Caribbean reduced. He would not say if he was hopeful of success, however.
“The Caribbean shouldn’t be penalised. People here are incredibly angry. Realistically, the only way to get to the Caribbean is by plane – you can’t drive or go by train.
“Put a tax on flights where there’s an alternative mode of transport, but not where flying is the only option.
“If the government is in any way interested in the environment, then I hope that logic will prevail. I hope it will come down in the Caribbean.”
Chancellor George Osborne froze APD in the Budget in March in the face of determined lobbying by the industry and following the launch of the Fair Tax on Flying coalition headed by Abta.
But the Chancellor plans a substantial rise in APD next April to compensate, taking account of inflation both this year and next.