BAR UK continues to lobby against damaging air tax policy
22-Jun-2010 The Board of Airline Representatives in the UK (BAR UK) claims that the failure of the Coalition Government to rule out the proposed per-plane tax (PPT) in today’s budget shows that they do not have an effective plan for the industry and that the planned tax will fail its environmental and economic objectives and drive trade and tourism to competing countries.
Mike Carrivick, Chief Executive of BAR UK said "A per-plane tax (PPT) would place an excessive burden on the UK's vital aviation industry and is completely out of touch with the country's urgent need of visionary policies that meet business and environmental objectives in the decades to come.
PPT is not a new idea; the budget announcement completely disregards the industry consultation responses to similar proposals made by the last government. Huge market distortions will be created, emissions would increase and Treasury's own revenues would decrease, so failing Government's two key objectives with this tax.
The PPT would lead to the destruction of the UK's long-standing position as the leading global transportation hub. This government needs to finally recognise the huge social and economic value that hub airports bring and the current policies are a contradiction with government's own aspirations to trade our way out of national debt.
The combined effects of aviation tax policies and the ban on any new runways in South East England will be so great that travellers will be encouraged to by-pass the UK and give their business to the fast-developing hubs elsewhere in Europe and the Middle East, resulting in more connecting flights and additional emissions. The Treasury will stand to lose millions as a result of projected passenger and cargo growth moving to neighbouring countries.
In addition, the Government's refusal to remove the existing Air Passenger Duty (APD), or PPT, with the introduction of the EU Emissions Trading Scheme (EU ETS) in 2012 means that the UK will be double taxed on aviation. Air travellers will be taxed at such exorbitant levels that UK residents will be priced out of flying and overseas visitors will choose to visit other countries instead, resulting in further damage to the UK's global aviation position."
BAR UK seeks to work with government but will continue to lobby for fairness in taxation and challenge their lack of commitment to the aviation industry, which is a key driver to the economic prosperity of this country.