Osborne Ditches APD Increase

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  • Anonymous
    Guest

    VintageKrug
    Participant

    Some good news as Osborne asserts himself and starts making some sensible decisions:

    http://www.telegraph.co.uk/finance/budget/8394488/Budget-2011-tax-increase-on-holiday-flights-to-be-ditched.html

    Labour had previously announced plans to increase the tax from next month.

    Gorgeous George is also planning on stopping a 5p increase in fuel duty, also due in April.

    Sense returning to the important issue of taxation on transport; hopefully more positive soundings after Wednesday’s Budget.


    Bucksnet
    Participant

    This is just tinkering; APD needs to be totally abolished.


    O.C.D.P
    Participant

    To be replaced by what exactly?


    Bucksnet
    Participant

    Nothing!


    VintageKrug
    Participant

    Well, I’m not sure that’s going to happen, but at least the signalling of the refusal to continue Labour’s escalating taxes on both airfares and on petrol/diesel is a welcome start.

    The amount of the tax is not currently appropriate, being focussed on the disbenefits generated by travel, rather than the many and various economic and other benefits aviation delivers for the UK.

    There’s no doubt in my mind that aviation does have to bear some form of taxation burden, but it doesn’t seem right that it should be borne directly by individual travellers who have little influence on the efficiency of their journey – paying the same to travel on a gas guzzling SAS MD-80 as a brand new BA Embraer.

    Once aviation taxes are collected, they should be spent on aviation infrastructure to increase runway capacity, re-organise European Air Traffic Control and encouraging more fuel efficient aircraft to genuinely deliver a more environmentally efficient journey for everyone.

    I also think that aviation fuel may well be subjected to a 5% tax in due course; not terrific in my view, but better than this warped APD tax which has got out of hand.


    Bucksnet
    Participant

    VK, make no mistake, the ever rising price of crude will be more than enough to ‘encourage’ airlines to fly more fuel efficent planes.


    VintageKrug
    Participant

    While I concur in the longer term, fleet renewal, especially for the larger “flag carriers” is much less simple.

    You can’t simply retire BA’s 100-strong fleet of 747s and 777s instantly for a whole range of reasons.

    In the short term it is much less expensive to engage in methods such as reducing luggage allowances, abandoning heavy in flight magazines, reducing the weight of paint on the exterior or introducing more direct routings, reducing stacking and developing direct approaches, as well as increasing runway capacity.

    If APD was invested to deliver such benefits, I wouldn’t be so against it.

    As it is, it’s an invidious tax which actually reduces airports’ and airlines’ profit margins at a time when they can ill afford it, and therefore stifles investment in greener technologies and infrastructure.


    Binman62
    Participant

    When the likes of BA stop having surcharges and credit card fees that are twice the level of APD on ticket then I will support something being done about APD.

    Once again however we see this government looking after the bankers and super rich whilst doing nothing for the ordianary man on the street.

    It is no surprise really, it is in their gene pool narrow as that is.

    They will ruin this country but make themselves rich whilst doing so.


    VintageKrug
    Participant

    Splendid. So everyone suffers while Binman proves a point!

    Socialism at its worst.


    NTarrant
    Participant

    Stopping an increase in APD is supporting the bankers and not doing anything for the ordinary man. How perverse!


    robsmith100
    Participant

    Sorry, but I don’t quite understand how would this not be helping the ordinary man?


    Bucksnet
    Participant

    And how is it supporting the bankers?


    TominScotland
    Participant

    However gorgeous George may be (each unto his own personal tates, I guess), worth remembering that he did permit the duty for short haul economy flights to be raised by £1 to £12 last November and by more for longer routes.

    The talk of a tax on flights by private planes is certainly not aimed at the “common man” (whoever this person actually is) and would be a fair way of closing a crazy loophole – no tax on aviation fuel or on the actual flights themselves for corporate or leisure travel of this nature is crazy.

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