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easyJet demands clarity over APD ‘tax trap’
EasyJet has urged Chancellor Gordon Brown to clarify tax rules for passengers who have already purchased flights for travel after February 1 when new Air Passenger Duty rates apply.
Millions of travellers have booked their flights at the previous levels of APD and are caught in a ‘tax trap’, according to the no-frills carrier.
The airline is urging the Chancellor to introduce the new regime for all tickets bought after February 1, 2007
“The arrangement for these passengers is unclear and any attempts to claw back tax could even be illegal under Section 30 of the Finance Act 1994,” the airline said.
“Not only are UK travellers affected but millions of inbound European tourists could get a nasty surprise when they arrive in the UK and are presented with another tax bill.”
Chief executive Andy Harrison said: “In his rush to grab the extra £1.2 billion of tax, the Chancellor has created confusion with millions of passengers facing a retroactive implementation of the increase in APD. The Chancellor’s proposal is akin to asking drinkers to pay extra tax on the wine which they bought a few weeks ago, but have not drunk yet.”
He added: “In his Pre-Budget Report, Gordon Brown mugged millions of air travellers and now has made the matter worse.
“As the Government have already acknowledged, APD is a blunt tax. We say that it is the wrong tax for the economy and the wrong tax for the environment. Not all airlines are the same.
“easyJet flies brand new aircraft with high passenger loads which mean that we emit 30% fewer emissions per passenger kilometre than a traditional airline.
“It is simply daft that our passengers should pay the same level of APD as the less efficient airlines and even dafter that freight aircraft that fly mange tout from Thailand are not being taxed at all.”
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