Air tax reform provides boost for holidaymakers 21 Mar 2014

A Fair Tax on Flying, a campaign group which represents dozens of travel firms, said the changes were recognition that "for far too long, travellers have been suffering as a result of the excessive levels of APD," but also urged the Government to consider further reforms.

Abta welcomed the move and described it as "a first step" in the reform of a "damaging tax". "Moving all long-haul flights into band B of APD at current levels will save passengers over £200m annually," a spokesman said, "and should boost travel and tourism, as well as promote greater UK connectivity."

It will continue to call for a reduction in overall rates of APD, however, which it said inhibits the contribution of the tourism sector to growth and employment.

Chris Clarkson, managing director of sunshine.co.uk, offered more muted praise. "Of course the reform in APD this year wasn’t anything dramatic," he said. "Was anyone really expecting it to be? The reductions planned for long-haul flights won’t benefit those holidaymakers looking to take trips closer to home, but at least it’s a start.”

Telegraph Travel has been campaigning against APD since 2008. It has already risen by up to 470 per cent since 2007, making British fliers among the most heavily taxed in the world. In a study published last year by the World Economic Forum, the UK was ranked 138th out of 139 countries according to the competitiveness of its air taxes and airport charges – ahead of only Chad in Africa. Only six countries in Europe currently levy a departure tax, and from April 1, Ireland will scrap its own equivalent of APD.

(The Telegraph)