United Kingdom
United States
Asia Pacific
UK trims tax on long-haul flights
A move by the UK government to introduce a single tax band for all long-haul flights will reduce the cost of flying from the UK to many destinations including Asia, Australia and New Zealand.
Chancellor George Osborne announced in this week’s Budget statement that from April 1 next year all long-haul flights would be taxed at the same rate as flights to the United States, which are in the B tax band. He is ditching the higher C and D bands.
Osborne acknowledged that it was “crazy” that passengers were taxed more for flying to India or China than those flying to Hawaii and he admitted the tax was hitting exports, deterring tourists and creating “a sense of injustice” within Britain’s Asian and Caribbean communities.
Cressida Sergeant, spokeswoman for TravelSupermarket, said: “We very much welcome the announcement that all long-haul travel will now be subject to the band B rate of £67 per person departing from the UK.
“Currently a family of four will pay a total of £376 in APD charges for a flight to band D destinations such as Australia or New Zealand. As a band B destination, this will reduce to £268, a total saving of £108.
“This is good news for both UK residents travelling to long-haul destinations and for visitors to the UK who are flying onto destinations previous within bands C and D.”
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