Air Passenger Duty
Encyclopedia
Air Passenger Duty is an excise
duty which is charged on the carriage of passengers flying from a United Kingdom
airport on an aircraft that has an authorised take off weight of more than ten tonnes or more than twenty seats for passengers. The duty is not payable by inbound international passengers who are booked to continue their journey (to an international destination) within 24 hours of their scheduled time of arrival in the UK. (The same exemption applies to booked onward domestic flights, but the time limits are shorter and more complex.) If a passenger "stops-over" for more than 24 hours (or the domestic limit, if applicable), duty is payable in full.
As part of the 2008 Pre-Budget Report, Air Passenger Duty was restructured. These new charges take distance into account, making long distance flying significantly more expensive. Critics of APD's claimed environmental credentials point out that the tax takes no account of the efficiency of the aircraft. An airline using an old inefficient plane is treated equally to one using the latest most efficient engines. Charges initially rose on November 1, 2009 and then again on November 1, 2010. Before this, Air Passenger Duty was controversially doubled from February 1, 2007, and the lower rate was extended to all the countries within the Single European Sky
. This table summarises the changes:
Here, 'European destinations' includes countries in the European Economic Area
and certain other European countries.
The distance used to calculate the new rate of APD is the distance between London and the capital city of the destination country as summarised below:
The Treasury forecast the 2007 rise will cut carbon dioxide
emissions by about 0.3 million tonnes a year by 2010-2011, and all greenhouse gas
emissions by the equivalent of 0.75 million tonnes of carbon dioxide a year, although that has been disputed.
As air passenger duty is paid upon booking, but not collected until an occupied seat flies, should a passenger be unable to fly they have a right to claim the paid tax back from the airline, although many airlines will charge an administrative fee for this service. http://www.thetravelmagazine.net/i-3327--reclaiming-air-passenger-duty.html
The tourist minister of Kenya
, Najib Balala
, criticised the Air Passenger Duty for hurting tourism and economy in developing countries.
From November 1, 2011 Northern Ireland will be exempt from the higher rates of Air Passenger Duty this is due to Continental Airlines
threatening to stop the direct Belfast - Newark flight due to lack of demand because of the tax. http://www.bbc.co.uk/news/uk-northern-ireland-15072772]
The Chancellors Autumn Statement, on the 29th November 2011, announced a near 10% increase in UK APD set for April 2012. Approximately 6.5 million people that have scheduled flights for after April 2012 will be forced to pay up to 10% more for the tax on their already paid for flights. The UK already has the highest Air Passenger Duty in the world and has already cost 25,000 UK travel industry jobs.
Excise
Excise tax in the United States is a indirect tax on listed items. Excise taxes can be and are made by federal, state and local governments and are far from uniform throughout the United States...
duty which is charged on the carriage of passengers flying from a United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
airport on an aircraft that has an authorised take off weight of more than ten tonnes or more than twenty seats for passengers. The duty is not payable by inbound international passengers who are booked to continue their journey (to an international destination) within 24 hours of their scheduled time of arrival in the UK. (The same exemption applies to booked onward domestic flights, but the time limits are shorter and more complex.) If a passenger "stops-over" for more than 24 hours (or the domestic limit, if applicable), duty is payable in full.
As part of the 2008 Pre-Budget Report, Air Passenger Duty was restructured. These new charges take distance into account, making long distance flying significantly more expensive. Critics of APD's claimed environmental credentials point out that the tax takes no account of the efficiency of the aircraft. An airline using an old inefficient plane is treated equally to one using the latest most efficient engines. Charges initially rose on November 1, 2009 and then again on November 1, 2010. Before this, Air Passenger Duty was controversially doubled from February 1, 2007, and the lower rate was extended to all the countries within the Single European Sky
Single European Sky
The Single European Sky is a European Commission initiative by which the design, management and regulation of airspace will be coordinated throughout the European Union ....
. This table summarises the changes:
| Old Rate | Previous rate | Feb 2007 - Oct 2009 |
|---|---|---|
| European destinations, lowest class | £5.00 | £10.00 |
| European destinations, other classes | £10.00 | £20.00 |
| Other destinations, lowest class | £20.00 | £40.00 |
| Other destinations, other classes | £40.00 | £80.00 |
Here, 'European destinations' includes countries in the European Economic Area
European Economic Area
The European Economic Area was established on 1 January 1994 following an agreement between the member states of the European Free Trade Association and the European Community, later the European Union . Specifically, it allows Iceland, Liechtenstein and Norway to participate in the EU's Internal...
and certain other European countries.
The distance used to calculate the new rate of APD is the distance between London and the capital city of the destination country as summarised below:
| New Rate | Nov 2009 - Oct 2010 (lowest) | Nov 2010 onwards (lowest) | Nov 2009 - Oct 2010 (other) | Nov 2010 onwards (other) |
|---|---|---|---|---|
| Band A (0 – 2000 miles) | £11.00 | £12.00 | £22.00 | £24.00 |
| Band B (2001 – 4000 miles) | £45.00 | £60.00 | £90.00 | £120.00 |
| Band C (4001 – 6000 miles) | £50.00 | £75.00 | £100.00 | £150.00 |
| Band D (over 6000 miles) | £55.00 | £85.00 | £110.00 | £170.00 |
The Treasury forecast the 2007 rise will cut carbon dioxide
Carbon dioxide
Carbon dioxide is a naturally occurring chemical compound composed of two oxygen atoms covalently bonded to a single carbon atom...
emissions by about 0.3 million tonnes a year by 2010-2011, and all greenhouse gas
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
emissions by the equivalent of 0.75 million tonnes of carbon dioxide a year, although that has been disputed.
As air passenger duty is paid upon booking, but not collected until an occupied seat flies, should a passenger be unable to fly they have a right to claim the paid tax back from the airline, although many airlines will charge an administrative fee for this service. http://www.thetravelmagazine.net/i-3327--reclaiming-air-passenger-duty.html
The tourist minister of Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, Najib Balala
Najib Balala
Najib Balala is a Kenyan politician. He is the Tourism Minister and a M.P...
, criticised the Air Passenger Duty for hurting tourism and economy in developing countries.
From November 1, 2011 Northern Ireland will be exempt from the higher rates of Air Passenger Duty this is due to Continental Airlines
Continental Airlines
Continental Airlines was a major American airline now merged with United Airlines. On May 3, 2010, Continental Airlines, Inc. and UAL, Inc. announced a merger via a stock swap, and on October 1, 2010, the merger closed and UAL changed its name to United Continental Holdings, Inc...
threatening to stop the direct Belfast - Newark flight due to lack of demand because of the tax. http://www.bbc.co.uk/news/uk-northern-ireland-15072772]
The Chancellors Autumn Statement, on the 29th November 2011, announced a near 10% increase in UK APD set for April 2012. Approximately 6.5 million people that have scheduled flights for after April 2012 will be forced to pay up to 10% more for the tax on their already paid for flights. The UK already has the highest Air Passenger Duty in the world and has already cost 25,000 UK travel industry jobs.
See also
- Airport Improvement FeeAirport Improvement FeeAn Airport Improvement Fee or Embarkation Fee or Airport Tax or Service charge or Service fee is an additional fee charged to departing and connecting passengers at an airport. It is levied by government or an airport management corporation and the proceeds are usually intended for funding of major...
, a related fee charged by the airport or government - German air passenger taxesGerman air passenger taxesGerman air passenger taxes are excise duties and other charges levied by the German government on most passengers departing by air, either in addition to the price of the airline ticket or incorporated into the ticket price.-Ecologocal departure tax:...
- The Irish Air Travel TaxAir Travel TaxThe Air Travel Tax is an Irish tax flights departing from airports in Ireland. It was introduced in the 2009 Budget. Until 28 February 2011, there are 2 rates of tax, €10 for each passenger flying to an airport more than 300 km from Dublin Airport, and €2 per passenger flying to any other...
- Ian PearsonIan PearsonIan Phares Pearson is a British Labour Party politician who was a Member of Parliament from 1994 until 2010, representing Dudley West from 1994 until 1997, and then Dudley South from 1997 until his retirement from the House of Commons at the 2010 general election...
External links
- HM Revenue & Customs Notice 550 Air Passenger Duty
- Ryanair accuses Brown of 'scalping' flyers Guardian Unlimited
- Daily Telegraph campaign
- Air Travel Advice Bureau Air Travel News Feed