Rishi Sunak might bring back 3 or 4 band APD,…

rishi-sunak-might-bring-back-3-or-4-band-apd,…

Rishi Sunak might bring back 3 or 4 band APD,…

Rishi Sunak might bring back 3 or 4 band APD, with a higher long-haul rate, but lower domestic rate
2021-10-23 07:27:00
Air Passenger Duty (APD) is currently charged in two bands, to destinations under 2,000 miles (£13 for passengers aged over 16) and above 2,000 miles (£82), with business class passengers paying more, and more for private jets. There was a consultation about rates of APD and the distance bands earlier in the year. It is thought that the Chancellor will announce, in his autumn budget, that APD will be reduce for domestic flights (passengers pay £26 for a return domestic flight, but only £13 for a return European flight).  Until 2015 there were four bands for APD, with under 2,000 miles, 2,000 to 4,000, 4,000 to 6,000 and over 6,000 miles.  It is thought likely that Rishi Sunak will bring back the higher distance band, for higher APD for flights of over 6,000 miles.  It currently makes no sense, in terms of carbon emissions, that the APD on a flight to Cairo or Dubai is the same as one to Thailand or Australia. Scrapping the APD on domestic flights does not help encourage people to take the train, when often the journey by train is quite easy – but far more expensive. A recent trial by campaigners compared the train and plane between central London and central Edinburgh. The plane was two minutes faster.  UK aviation is seriously under-taxed, paying no VAT and no fuel duty. .Tweet Cost of flights to rise as Rishi Sunak prepares to raise air passenger duty Exclusive: chancellor to boost green credentials by hitting environmentally damaging long-haul flights By Heather Stewart Political editor (The Guardian) Fri 22 Oct 2021 Travellers to destinations including Australia, South Africa and Japan can expect to pay more to fly, as Rishi Sunak prepares to overhaul air passenger duty in next week’s budget to reflect the environmental damage wrought by long-haul flights. The chancellor is keen to burnish his green credentials after a week in which he was accused of failing to back Boris Johnson’s net-zero pledges with sufficient resources. It is understood that he will announce that a reform of the tax, mooted earlier this year, will go ahead, with a higher rate levied on the longest journeys. Air passenger duty (APD) is paid by airlines, who tend to pass much of the costs on to their customers. It is currently charged in two bands, to destinations under 2,000 miles and above 2,000 miles, with business class passengers paying more. The maximum levied per passenger is currently due to rise to £554 next April. In a consultation document published alongside the March budget, the treasury set out several options for reforming APD. Its favoured approach was a new, three-band structure, with destinations more than 6,000 miles away facing the highest charge. There is also expected to be a new, lower rate for domestic flights. Such a move is likely to be sold as encouraging levelling up and protecting the Union by fostering connectivity between the nations and regions – though it could be controversial where there are viable public transport alternatives such as train routes. Environmentalists are likely to reject reforms of APD as much too modest to have an effect on curbing the demand for polluting flights. The New Economics Foundation (NEF) thinktank has called instead for a frequent flyer levy that would see regular air passengers pay more for the second and subsequent flights they take in a year. NEF research shows that 15% of people take 70% of flights. Ministers published a “jet zero” strategy in the summer aimed at reducing emissions from air transport, but it is widely r

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