ABTA has called on the Government to match Scotland’s proposed reduction of Air Passenger Duty with a view to abolishing it in England altogether within five years.
Head of public affairs Stephen D’Alfonso said it was ‘the only sensible approach’.
In its submission to the HM Treasury discussion paper on options for protecting English regional airports from the impact of APD devolution over the border, ABTA said there must be a fair and equal tax regime across the UK.
"With the Scottish Government reaffirming its commitment to reduce APD by 50%, and eventually abolishing it, ABTA believes that the only sensible approach to ensure fairness for passengers across Great Britain, while improving the tax competitiveness of the whole of the UK, is for the Government to significantly reduce APD, initially by matching the cuts promised in Scotland, with a view to abolishing it altogether in the life of this Parliament," said D’Alfonso.
"Our submission highlights that the proposed solutions will add layers of complexity to APD for passengers and businesses while distorting the marketplace. ABTA believes that any solution must result in a fair and equal air tax regime across the UK, and a cut anywhere in Great Britain must to be matched immediately by the same reduction elsewhere.
"This is the only way to avoid a situation where parts of the UK are unfairly disadvantaged by having higher rates of APD, making it costlier for businesses in those areas to trade internationally, more expensive for foreign tourists to visit them and ultimately limit choice for local passengers.
"We call on the Government to launch an urgent review of the broad economic impacts of APD with a view to significantly reducing, or abolishing APD altogether in the life of this Parliament."
