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Fair tax campaigners get tough on the Treasury

Friday, 29 November 20133 min read

The Fair Tax campaign has accused the UK Government of being out of touch with international thinking on air passenger taxes.

In its latest evidence submitted to the Treasury, made ahead of next month’s Autumn Statement, campaigners say the recent abolition of Air Travel Tax on Ireland puts the UK at a competitive disadvantage.

"We applaud the Irish for their forward thinking, and encourage the Treasury to take similar steps to reduce the negative effects of the tax in the UK," says the submission.

It describes Air Passenger Duty as a "severe brake on demand, hampering aviation growth and restricting the ability of this sector to energise and mobilise the wider UK economy".

It also argues that the UK economic climate is now conducive to a reform of the tax, with GDP growing for the third quarter running.

The campaign, which has now got the support of over 200,000 people and over 100 MPs, called on the government to undertake a macro-economic impact assessment of the economic impacts of APD.

“The Autumn Statement is another opportunity for the Chancellor to take the initiative on APD reform," said Darren Caplan, CEO of the Airport Operators Association.

"A growing body of evidence is revealing the damage that APD is having on UK aviation and tourism. In a fast changing, globalised world, countries across Europe are recognising that air taxes are barriers to long-term growth and connectivity. The UK risks becoming increasingly isolated if it refuses to put an end to current year-on-year increases in APD, and we respectfully urge the Chancellor to use this statement to change course."