LONDON: MPs are urging the government to halve air passenger duty in next week’s Autumn Statement, saying the tax hampers post-Brexit Britain’s ability to trade outside Europe.
The British Infrastructure Group (BIG) claims the tax acts directly against a policy of extending UK business links to the “farthest reaches of the globe”.
The tax is set to rise again in April to £150 for some long-haul flights.
In a report, BIG said it should be cut by 50%, then scrapped altogether.
Grant Shapps, the former international development minister who leads BIG, said Prime Minister Theresa May needs to make good on a promise she gave on Monday to “forge a bold, new, confident future for ourselves in the world”.
He said: “Particularly post-Brexit, now is the time to do it.” He added that reducing air passenger duty (APD) could provide an immediate “Brexit dividend” because the government would not have to wait until Article 50 is triggered to make the cut.
Britain has one of the highest air travel taxes in the world. On economy class flights of over 2,000 miles, passengers pay £73 in tax, which will rise to £75 next year. On long-haul business class journeys, flyers currently pay £146 in duty which will increase to £150 in April.
In the report, BIG cites industry figures that show UK APD for non-economy tickets is three times more expensive than France and four times higher than Germany.
It notes that Ireland has scrapped APD completely. Also, Scotland is planning to reduce APD by 50% in 2018.
