RIP APD ?
On 1st Jan 2013 it will be possible to fly direct long haul routes from N. Ireland without incurring the much disliked and expensive Air Passenger Duty due to new local legislation. APD is charged on all flights leaving UK airports on a four tier scale based on the distance from London to the Capital City of the destination country. There are two levels depending on the class of cabin - Economy and Premium Its possible that the Welsh National Assembly will follow suit in due course when the Assembly is granted the right to determine local taxes. This is likely after the Silk Commission backed devolving a range of taxation powers to the Welsh National Assembly, provided Wales votes for it in a referendum.
This underlines the fact that APD is seen by business as a tax on international trade and tourism at a time when it is obvious (that is except to certain Westminster politicians and Treasury manadrins it seems) there is a huge need to stimulate international opportunities and growth in these areas. The need to reduce, or better still, cut entitely is something that I have personally, and on behalf of Cheapflights, been claiming since 2006! With this latest news I am reminded of the old (Hong Kong) Chinese proverb: "If you are stuck behind a red traffic light, you should honk your horn long and hard and the light WILL eventually turn green......!
If the Wesh do vote for the Silk Commission recommendations and APD is also eventually axed in Wales, its not difficult to see UK air passengers from the South and West of England heading up the M4 motorway for Cardiff. Long haul flights from Cardiff rather than to Gatwick or Heathrow will cost hundreds less for families going for mid and long haul holiday destinations. How long then before Scotland follows the Welsh and England is left alone in the UK with the regressive and anti-recovery Air Passenger Duty?
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