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UK government remains committed to exploring changes in APD

12-Jan-2011 12:37 PM

UK Labour MP, Lord Borrie, has pressed the government about the impact of APD revenue on UK’s competitiveness (ePolitix.com, 11-Jan-2011). In reply, Lord Sassoon, commercial secretary to the Treasury, stated that the tax is expected to generate GBP3.6 billion in FY2016, based on growing passenger numbers and APD increases in line with inflation. Lord Sassoon stated that the government remains committed to exploring changes in the tax and will continually assess the impact on the country’s competitiveness, adding: "It is certainly not the intention of the government to damage the competitiveness of any section of the economy, least of all the tourist sector."

UK Labour Party: "Many other countries on the European continent have no duty at all and in some cases they are much lower than Britain … Therefore the competitiveness of our airlines and our airports and our tourist industry is at a disadvantage. Surely this is one matter on which the government has ... control. Tourists are wanted from countries like India and China, growing economies, and we are turning them away, literally, by this unduly high duty." Lord Borrie, MP. Source: ePolitix.com, 11-Jan-2011.