ABTA is calling on the Government for ‘meaningful reform’ of Air Passenger Duty to maintain the UK’s global competitiveness and support the country’s net zero carbon emissions target by 2050.
Ahead of the March budget, ABTA has written to the Chancellor saying it believes the promised review should be part of a wider reform process.
In the letter, ABTA highlights that APD is not, and has never been an environmental tax and does not incentivise cleaner, greener, practices by airlines or passengers.
ABTA also warns against participating in any trade-offs between domestic and international connectivity.
The UK currently has the highest level of international departure taxes in Europe, and ABTA believes any further hikes would increase the cost of holidays for UK residents and send a negative signal to countries the UK is looking to trade with.
Chief executive Mark Tanzer said: "Any reform in domestic duty at the expense of international duty without a wider review would only serve to undermine the UK’s international competitiveness and cause holiday prices to rise, whilst failing to address pressing environmental priorities.
"Meaningful reform, delivered in partnership with the industry, can maintain the country’s global competitiveness and support the Government’s commitment to lead the world on reducing carbon emissions."
