The cost of Air Passenger Duty (APD) is set to rise again on 1 November 2010.
This extremely unpopular tax on air travel was introduced in 1994 and currently generates in the region of £2 billion for the Government.
Two years’ ago, the tax had two rates: Reduced Rates (for economy seats) and Standard Rates (premium seats including business class) and was levied according to destination, European or the rest of the world. The reduced rate was £10 for European destinations and £40 for all other destinations, Standard rate was £20 and £80.
In November 2009, four geographical bands were introduced based on the distance from London with rates starting at £11 for flights to Europe – Premium seats are charged at double the reduced rates.
Now, these rates are set to increase again on 1 November – the new fees are set out below:
- Band A – flights to Europe £12
- Band B – flights of up to 4,000 miles £60
- Band C – flights to the Caribbean £75
- Band D – flights to Australia and New Zealand £85
For Premium seats the charges are double at:
- Band A – flights to Europe £24
- Band B – flights of up to 4,000 miles £120
- Band C – flights to the Caribbean £150
- Band D – flights to Australia and New Zealand £170