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Calls For UK Air Tax To Be Scrapped

by Robin Pilgrim, LawAndTax-News.com, London

13 April 2009

Chief Executive of The Travel Association (ABTA), Mark Tanzer, has written to the UK Chancellor of the Exchequer Alistair Darling calling on him to address urgently five key industry issues in his next budget.

Mr Tanzer's concerns largely centre around the tax levied on air travel, and include:

  • Tourism Taxation – Cutting the taxation burden on both outbound and inbound tourism to help stimulate demand;
  • Air Passenger Duty – Consider withdrawing APD or at the very least cancelling the second phase increase planned for November 1, 2010, as well as rectifying the illogical anomalies in the proposed banding structure;
  • Financial Protection for all Air Travellers – Emphasizing that the failure of the XL Group has graphically highlighted the pressing need for a comprehensive scheme for all air travellers and the inadequate nature of past Government actions;
  • VAT – Following EU proposals on a review of the Tour Operators’ Margin Scheme, not to make any changes without industry consultation and to provide a reasonable lead-in period; and
  • Visa Costs – To reduce the relatively high visa costs for entry to the UK.

ABTA has also asked Mr Darling to meet to discuss these concerns.

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