Treasury to consult on air passenger duty

The Treasury wants to reform air passenger duty, but businesses and NGOs do not welcome its plans

The Treasury has launched a consultation on simplifying the aviation taxation system.1 It aims to improve fairness and efficiency and ensure the industry makes a fair contribution towards the public finances without hampering growth.

Table: Air passenger duty proposalsThe Treasury proposes replacing the current four-band air passenger duty (APD) system with either a two- or three-band model (see table). Passengers would still be charged according to flight distance and travel class. The amount of revenue collected would remain the same.

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