It has been reported today that business class travellers from the UK are paying more tax on their flights, than European counterparts.
‘A Fair Tax On Flying’ have released the results of research they conducted, which seem to suggest that those flying in business class play double the Air Passenger Duty than those travelling in economy.
It has been claimed that corporate travellers have paid £400 million more tax on their flights than they would have had they been subjected to the European and not UK levy.
In 2017 those travelling on short haul flights pay £13 in APD for economy seats and £26 for business. On long haul flights that sum rises to £73 economy, £146 business. In Germany the average payment is £5.68 short haul and £32 for longer journeys.
A Fair Tax on Flying’s spokeswoman Karen Dee said: “Whilst this analysis highlights how our high levels of APD are hitting business travel and our ability to grow trade, it is also affecting the cost of leisure trips and holidays.
“We need a decisive cut in APD to open up new routes to emerging markets and make it easier to build up trade and to make the UK an even more welcoming destination for foreign business travellers, many of whom invest here.
Edel Doherty, Managing Director of Beyond Business Travel Northern Ireland says: “APD is one of the easiest taxes for the Treasury to collect as airlines need to administer their own payments.”
However she does call for a rethink, especially in Northern Ireland, where APD on long haul flights has been removed.
She is sure that reducing APD would have a positive influence on tourism and business travel in the region and added: “One airline recently said if APD is scrapped they will give Belfast International Airport one million extra seats. Other airlines that have said similar things.”
Doherty concluded that a major change could deliver a “step change” for the travel industry.