The British Air Transport Association is calling on Chancellor George Osborne to use next month’s summer Budget to ‘finish the job’ and abolish or significantly reduce Air Passenger Duty (APD).
It says following the decision in the last Parliament to abolish APD for children, the Government should now scrap it altogether.
Alternatively BATA, which represents UK airlines, is urging the Government to at least cancel the RPI increase in APD rates on 1 April 2016.
It also highlighted the ‘significant’ concerns about market distortions and unfairness to passengers living in different parts of the UK following the devolution of APD to Scotland and Wales.
It believes a proposed Treasury discussion paper on policy responses to devolution should consider the widest range of policy options, including abolition and significant reductions of UK APD ‘if it is to be credible’.
BATA chief executive Nathan Stower said: "The new Conservative Government wants to increase trade with the emerging economies, tackle low productivity and create two million jobs over the next five years.
"The experience of other countries and economic modelling for the UK suggests that the abolition of APD would make a significant contribution to those aims.
"The Chancellor should use the Budget to announce plans for the abolition of APD – the highest tax on flying in the world – during the course of this Parliament."
