The government will proceed with a rise in Air Passenger Duty (APD) of double the inflation rate next April after freezing the tax this year.
The Treasury confirmed the increase as part of the Chancellor’s Autumn Statement today.
Full details will be announced on December 6 along with details of the government response to the consultation on APD earlier this year and any changes to banding.
The Treasury’s Autumn Statement declared: “Air Passenger Duty (APD) rates will increase from 1 April 2012, as set out at the Budget 2011.”
In the March 2011 Budget, the Treasury gave notice: “The increase [in APD] assumed in the [2011-12] forecast will be deferred and implemented alongside the April 2012 RPI [Retail Price Index] increase.”
The current RPI inflation rate is 5%, suggesting next year’s rise in APD will be close to 10%.
The Government confirmed it will proceed with the extension of APD to flights aboard business jets from April 2013. Full details of this will also be set out on December 6.