There are some things in life that are certain – being born, dieing, suffering from a stinker of a cough/flu, and of course, taxes.
The one certainty there has been over the past few years is that Air Passenger Duty (APD) which is levied on flights departing the United Kingdom is going to shoot up. Again.
So, how much extra are you going to be spending from Chancellor George Osborn’s latest milking of the airline passenger?
Well, as you’re probably aware, your APD cost is calculated by how far you’re travelling (from London to the Capital City of your destination) and then by what class you’re travelling in (Economy gets a 50% discount on the APD rate – Premium Economy, Business and First get to pay the full rate.
Band A - up to 2,000 miles from the UK and all European destinations Cabin From 1st April 2013 From 1st April 2014 Economy £13 £13 Others £26 £26 Band B - from 2,001 to 4,000 miles, includes North American destinations Cabin From 1st April 2013 From 1st April 2014 Economy £67 £69 Others £134 £138 Band C from 4,001 to 6,000 miles, covering South America, China Cabin From 1st April 2013 From 1st April 2014 Economy £83 £85 Others £166 £170 Band D over 6000 miles from London, covering Australasia, Malaysia Cabin From 1st April 2013 From 1st April 2014 Economy £94 £97 Others £188 £194
Well, that’s kick in the sensitive areas isn’t it?
The impact is going to be simple – either people pay up (which is what the government hopes people do), or people will shift to other European hubs, and do their business elsewhere. For mileage runners/savvy travellers, they’ll choose to do an open jaw between London and some other European City, whilst paying the bare minimum on APD.
Those of you who wish to let the Chancellor of the Exchequer your thoughts about this rise, feel free to Tweet him at @George_Osborne.
Well, as an elected member of parliament he deserves the workload.