Sunak halves domestic APD and introduces a band of over…

sunak-halves-domestic-apd-and-introduces-a-band-of-over…

Sunak halves domestic APD and introduces a band of over…

Sunak halves domestic APD and introduces a band of over 5,500 miles (costing just £5 more)
2021-10-30 08:51:00
Air Passenger Duty is the only tax paid on air travel, as it pays neither fuel tax nor VAT. The rate has been £13 for a return economy flight to anywhere in Europe, since April 2012. The price is £82 for trips of over 2,000 miles. Until April 2015 there were four distance bands for APD.  Adults on domestic flights paid £13 for each part of the return trip, ie. £26 return.  Now the Chancellor has halved the rate of domestic APD, from April 2023, so it would just be £13 for a return trip. The claim is that this helps connectivity within the UK, being useful for those in Scotland and Northern Ireland. Flights within the UK are usually cheaper than rail tickets, and cutting APD sends completely the wrong signal, in making flights even cheaper – when what would help cut CO2 would be to reduce the cost of rail travel.  Riski Sunak has introduced a new distance band for APD, so instead of just the two bands – of under, or over, 2,000 miles – a new band is added – of over 5.500 miles. This is from April 2023. But the increased APD level will just be £91. The rate for trips of over 2,000 miles will be £84 from April 2022, and if it rises by £2 per year, which is usually does, would be £86 by April 2023. So the higher rate will be just £5 more. Not much of a disincentive, or help to reduce CO2.  Treasury expects £35 million less per year from APD after 2023. ,Tweet Treasury page on APD rates https://www.gov.uk/guidance/rates-and-allowances-for-air-passenger-duty#rate-bands The Budget in March 2021 This kept APD for flights of under 2,000 miles at just £13 for a return flight, and an inflation increase of £2 for flights longer than that. Domestic APD remained at £13 for both parts of a return domestic flight. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/966869/Budget_2021_Print.pdf   AUTUMN BUDGET AND SPENDING REVIEW 2021 – October 2021 Sunak halved the tax on domestic flights, which are already far cheaper and more polluting to take than trains. Air passenger duty was increased by £4 on “ultra-long” flights over 5,550 miles, from £87 to £91. But Sunak said: “Less than 5% of passengers will pay more.” Overall, the changes are a tax giveaway of £30m a year. Treasury document : https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1029973/Budget_AB2021_Print.pdf Some quotes from it: The Budget also reduces the cost of Air Passenger Duty on domestic flights to support greater air connectivity within the UK. The government is

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