I am sat here wondering if the UK government gives a damn about tourism, or, do they even want the electorate to leave the country – frustration for travel consumers as we face more expensive holidays after the Chancellor announced that the Air Passenger Duty (APD) increase will go ahead as planned in April next year.
Passengers already booked will pay the additional tax
Now, here’s the interesting part of the increase, quoted from Travel Weekly, you will like this.
The Treasury has confirmed the increased rates for Air Passenger Duty (APD) from next April, retaining the existing four bands for another year, and also confirmed passengers already booked to fly will have to pay the additional tax.
The new rates were released overnight. Passengers who have already booked tickets for travel from April 1 will have to pay the extra – with airlines expected to collect the money.
Air Passenger Duty rates from April 2012
Here’s a table of the bands, and how much you can expect to pay on top of your already expensive flight ticket.
Airlines will recoup loss with increased flight prices
Amazing huh, those of you who have booked flights to depart on 1 April 2012 or later will have to pay the additional tax, how bloody crazy is that – airlines are going to have to bill thousands of passengers for this ridiculous tax on flying, probably costing millions, which will mean even higher flight prices for passengers as they recoup this cost.
Hike in Air Passenger Duty
So what does this mean for passengers? Well, long haul flights have become even more expensive, with air passenger duty on economy flights going up to £81 from the UK to Thailand. Those thinking about a holiday in Australia will have to pay £92.
Premium economy and Business class to increase too
Travel Weekly have also suggested that Air Passenger Duty on premium economy and business class fares will be double these rates, unless the government changes the current banding rules, when it responds to an industry consultation next Tuesday on 6 December.
Is the retrospective APD bill legal?
I would need to look into this in more detail, but when you’ve booked a flight with an airline under those booking terms and conditions is it legal that they can ask for additional APD after paying for a flight?
Airlines hopefully will communicate process to passengers
At this stage I am assuming that the additional Air Passenger Duty will be taken off the debit or credit cards that were made to book the flight/holiday, but hopefully airlines will use common sense and communicate how much this will be and when the money will be taken out, so that people do not go over their limit or overdrawn.
Your thoughts on Air Passenger Duty to increase
What do you think about the retrospective payment of the air passenger duty, or the increase itself in April 2012? The government did confirm I think that this was no longer a green tax – but, the funds are simply helping the economy, what do you think about that?
Related posts
- Increase in Air Passenger Duty from February 2007
- Sign the UK Air Passenger Duty Petition
- Air Passenger Duty Update
- Flight taxes rise again but are consumers really bothered
- Thoughts on Air Passenger Duty changes
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Andrea Kirkby | 30 November, 2011 at 10:03 pm
If this is a ‘green tax’ then it’s not working.
A truly ‘green’ airport duty would discourage short haul airline use, for which more sustainable alternatives, such as rail, exist. So the person booking a flight to Manchester, who could equally well use a train, should pay £90 tax – the person flying to India or Japan, who doesn’t have that alternative, is not going to be switched to an alternative that doesn’t exist.
Equally, though it could be difficult to implement, why not differentiate the tax by length of stay? So someone going away for six months on a return ticket would pay less than someone getting a weekend or day return.
If the aim is not to change people’s behaviour, then any idea that this is a ‘green’ tax is bullshit – it’s just another way of getting cash out of the taxpayer without increasing the rates of income tax.
John | 11 December, 2011 at 8:31 pm
Andrea, I like the logic in your argument. Encouraging rail and bus by taxing air more would be a good move. I see flaws though. How do you tax a flight from Liverpool to Dublin? A trip on a high speed ferry can work out worse than the flight.
The current bands are roughly correlated to the carbon footprint of the trip. Therefore as a First Class passenger has double the carbon footprint of an Economy Class passenger, they as twice as much tax. Unless the tax is negligible compared to the spending power of the passengers, then it will lead to a change in behaviour. It will also discourage long haul flights for holidays.
As to where the funds go, it is a mute point. As the government is so short of revenue it is cutting back on measures to improve sustainability in other areas, so anything that brings in tax revenue helps the overall situation.
What is better taxing men and women, because they have worked hard, thus discouraging effort, or taxing consumption that damages the environment?
Dee | 12 December, 2011 at 1:03 am
So Thailand will be £81 up from the current £50, an increase of £31?
Guess who has to pay this for people who have booked for April onwards and through a tour operator (as part of a package) rather than direct with the airline?
Yes that’s right, in our case us as we have a no surcharges policy. That’s a lot of £31s. Travel companies do not need this.
But even if we hadn’t, I don’t think on the whole tour operators can charge the customers in this case. Depends on the cost of their package. In our case the average is around £1,900 for 2 weeks. Tour operators who don’t have a policy like ours can only charge surcharges between 2-10% (they can charge over 10% but consumer also has right to a refund). 2% in this case would be £76, so it would be illegal to charge the consumer extra.
Dee | 12 December, 2011 at 1:07 am
Ah. I thought i didn’t seem right.
It’s currently £76 to Thailand. So that’s a £5 increase to Thailand.
Phew.
Nothing like it changed last time.
That was really painful for us.
Dee | 12 December, 2011 at 1:08 am
If you booked direct with an airline, I would imagine it is legal for them to collect extra money from you.
pete | 13 December, 2011 at 3:03 pm
it does look like its another thing the government want to tax to get a bit more money, i knew a tax would be introduced at some point to be honest
Linda | 15 December, 2011 at 5:05 am
Ah great, another tax here that got increased. Where does it all end??
Adam | 16 December, 2011 at 3:37 pm
This is a nightmare, looks like the holiday complaints have started even before anyone has been on holiday. You think this country does not want anyone to go on holiday wouldnt you. And for those that have booked for April 1st or later having to pay extra is something that is not needed, what a mess up aye.
Chris | 16 December, 2011 at 9:26 pm
It was inevitable, as the Goverment looks for ways to raise money.
The travel industry is an easy target.
So when Ryanair posts profits of over 1/2 billion euros and forecasts bigger profits to come, HMG probably figures that it’s time they got their share.
Yes I know Dee, you aren’t in the same business, and no, it doesn’t seem fair.
Since when did HMG worry about what was fair?
Now if they introduced a tax that penalised airlines for poor customer service, I’d vote Cameron back in with pleasure.:)
Dee | 18 December, 2011 at 1:32 am
Chris, I don’t actually mind, it’s not as bad as the last time (which was under a different government). There’s actually a lot more going on at the moment in terms of interest rates or currency fluctations etc etc etc that makes more of a different to us than the £6pp difference in APD.
Btw tangent on the subject of Ryan Air, I am surprised not more is made by the media on the fact that as they are Irish they are not subject to the same regulation as say Easyjet.
Dee | 18 December, 2011 at 1:35 am
Adam, per my previous post if said people who have booked have done so with tour operator and their holiday falls within EU Package Travel Regulations then they most likely wouldn’t have to pay.
Cc | 20 December, 2011 at 1:27 pm
Personally I feel that this is disgusting that passengers who have already booked will have the pay extra from next April.
Br | 21 December, 2011 at 10:28 am
Its always the customer that foots the bill, its absolutely shameless the way our Government treats us consumers, we have every right to leave this blighted island of ours and enjoy a tropical beach, without having to pay through the nose for it !
Toby | 22 December, 2011 at 2:16 pm
I’m afraid this is the way the economy is creeping. The government will keep seeping more and more money out of us!
Nick | 22 December, 2011 at 2:49 pm
To place APD in perspective. If you excluded the UK, the total tax collected in Europe on air travel will be £1.17 billion pounds.
The expected Tax to be collect in the UK in 2012 £2.2 billion pounds almost double the other countries combined total.
Nick | 22 December, 2011 at 2:52 pm
John,
You said “The current bands are roughly correlated to the carbon footprint of the trip” however it will cost you more to fly to the Caribbean than to Hawaii which is twice as far. As the current goverment has stated this is not a green tax.
Michael Taylor | 27 December, 2011 at 2:22 pm
I attended a press conference in Hong Kong a couple of weeks back. An “industry insiderr” said that Brits were being held ‘captives” in their own country by the ridiculously high departures tax. Governments look upon travel as a cash cow to be milked dry, forgetting that the travel industry is larger than banking or automobiles.
John | 28 December, 2011 at 10:09 pm
Nick, I am aware of the inconsistencies, hence the “roughly”. I am also aware that the current government have said it is not a green tax. They did a massive U turn on their pre election statements of wanting to be green.
I’m not sure what you point is.
Jason | 31 December, 2011 at 2:33 am
Welcome to 1981 again! Tory government, economic crisis and rising prices.
It’s a worry!
Murray Huberfeld | 2 January, 2012 at 12:18 am
If only rail and other alternatives were a comparable option…
Darren Cronian | 5 January, 2012 at 9:38 pm
HUGE apologies for the slowness in moderating around here. Will moderate much quicker I promise. Back to the discussion.
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21 responses to “Air Passenger Duty to increase in April 2012”