The travel industry has reacted angrily to the Government’s Budget plans to increase aviation duty.
In today’s Budget, the Chancellor announced that the forecast total tax revenue from the new aviation duty, which is due to replace Air Passenger Duty in November 2009, will be increased by 10% in 2011-12, the second full year of operation.
Guild of Travel Management Companies chief executive, Philip Carlisle, said: “This is another short-sighted tax grab by government.
“The Treasury’s press notice supporting the Budget Statement explicitly states that the purpose of this tax increase is to raise money to pay for public services.
“GTMC acknowledges that aviation should bear the cost of its emissions but we believe strongly that the revenue raised should fund either environmental projects or be used to develop much-needed transport infrastructure.
“Aviation should not be used as a means for the Chancellor to raise general revenue to help him balance the books.”
In the Budget, the Chancellor also announced spending on biometric technology at UK airports, in order to speed up the time it takes to get through immigration.
By Bev Fearis
