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CallMeIshmael
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HM Gov budget statement pertaining to APD

“Air Passenger Duty
1.152 In the June Budget 2010, the Government undertook to explore changes to the aviation
tax system, including switching from a per-passenger to a per-plane duty. The UK’s international
obligations in this area include Air Service Agreements with over 150 different countries and the
1944 Chicago Convention. The Government will not introduce a per-plane duty at the present
time, given concerns over the legality and feasibility of this approach. The Government will start
a programme of intensive work with our international partners to build consensus for a perplane
duty in the future.
1.153 Today the Government is launching a consultation on reform of Air Passenger
Duty. The Government wants a simple tax system for air transport services which does not
hamper growth, which ensures a fair contribution toward the public finances and which will
support the reduction of global emissions. The consultation includes plans to extend the tax
system to flights taken aboard business jets for the first time. The Government will also
freeze Air Passenger Duty rates for 2011-12, with the RPI increase assumed in the
forecast deferred to April 2012.

2.140 Aviation tax: rates – Air Passenger Duty (APD) rates will be frozen for 2011-12. The RPI
increase assumed in the forecast will be deferred and implemented alongside the April 2012 RPI
increase. (Finance Bill 2012) (36)
2.141 Aviation tax: consultation and business jets – At the June Budget 2010, the
Government announced it would explore changes to the aviation tax system and that major
changes would be subject to consultation. A consultation on the structure of APD, launched on
23 March 2011, includes plans to extend the duty to flights taken aboard business jets. (Finance
Bill 2012)