This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

Bookmark Email Print page

Budget 2013: Deloitte comments on the omission of Air Passenger Duty reform

21 March 2013

Daniel Barlow, an indirect tax partner in the travel, hospitality and travel practice at Deloitte, said:

“The government is committed to retaining Air Passenger Duty (APD), probably for the simple reason that it raises £3 billion of revenue per year and only costs 0.06 pence to collect for every £1 raised. However, the debate on APD is more complex. The aviation industry has put forward arguments that the tax does not help the UK’s competitiveness, given that the majority of EU Member States do not have a similar tax.

“Furthermore, there are areas where APD causes distortions of competition and requires reform. For example, a passenger flying from Belfast to Alicante will pay £13 APD if they fly direct. However, they are likely to pay £26 APD if they make the same journey but book two connecting flights through London with budget airlines. The same passenger will pay €3 Irish Air Travel Tax APD if they go over the border and catch their flight to Alicante from Dublin. If the government is set on retaining APD, it’s likely that the industry will focus on ending these types of market distortion.”

Ends

Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities.

Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited

Share this page

Email this Send to LinkedIn Send to Facebook Tweet this More sharing options
Follow:

Get in touch

More on Deloitte