Labour travel tax – another holiday tax

So with the election looming, what exactly has labour done for us, well apart from having some rather sleazy politicians, they are taxing our well earned holidays, with another stealth tax, called APD (Air passenger duty), conveniently disguised as a green tax.

Yes we know this has been brought up before, but its a classic example of poor planning.. This Tax should have been per aircraft and not per passenger.

Its interesting to note, that the airlines have improved the fuel efficiency of their aircraft by leaps and bounds, but to make this tax even more farcical cargo aircraft are exempt, yet they use older less fuel efficient aircraft.

The Government sold APD to the public as a “green” tax, yet it seems not a penny has been spent on environmental causes. The tax generates £2 billion a year. The new system is expected to bring in £3.5 billion by 2012…

Something to remember when voting time comes along.

New banding’s in aviation tax which makes it more expensive to fly to the Caribbean than Hawaii would be scrapped by a Conservative government. November 2009.

So what does it mean to you?

Well currently the tax is calculated using the distance from London as follows on economy seats… On a per person basis..

Band A (less than 2000 m) £11 e.g. Europe, Canary Islands
Band B (2001m – 4000m) £45 e.g. Egypt, Gambia, UAE
Band C (4001m – 6000m) £50 e.g. Caribbean, Mexico, Thailand, Kenya
Band D (6001m+) £55 e.g. Australia, Indonesia, Fiji, Peru

…with these charges being doubled for premium economy, leading to many leading travel companies threatening to abandon their premium-economy cabins. The tax will increase further again in November 2010.

Plus a damning report from Which? Holiday, suggests that passengers trying to claim back Air Passenger Duty (APD) on unused flights are often being charged admin fees, which can equate to more than double the original value of the tax, whilst the unclaimed APD remains with the airlines.

Anyone travelling on a low-cost airline to connect to London airports and on to Europe will have to pay the increased tax not just on one flight but on two.

We can therefore expect travellers from the regions to avoid London, and the tax, by picking up their long-haul connections in Amsterdam.

In 2004 the Government imposed APD at £5 for short-haul flights and £20 for long-haul flights. In that time, airlines have improved the efficiency of their fleets, yet the Government’s response has been to raise the tax on flights by up to 425 per cent.

This comes as the travel industry is having to contend with rising fuel prices, the recession and a weak pound. The International Air Transport Association reports that, globally, airlines lost $17 billion last year. When the biggest increases in duty are due, next November, some airlines may not be around to see them.