Tuesday, December 6, 2011

UK Proceeds with APD Increase

Earlier today the British Government announced that, despite objections from airlines and travel and tourism groups, the Air Passenger Duty (APD) will increase by eight percent next year, and will be broadened to include passengers on private business jets. See Oliver Smith, Air Passenger Duty: Government Rejects Changes to Aviation Tax, Daily Telegraph, Dec. 6, 2011 (available here). The tax was first introduced in 1994 and has been billed as an environmental measure. However, with aviation emissions on the verge of being capped by the EU's Emissions Trading Scheme, it is far from clear that the APD will produce greater emissions reductions than those already expected under the cap. The government's ongoing need for revenue seems a more likely reason behind the increase. 


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