Gatwick welcomes Government decision to freeze tax on air passengers
24-Mar-2011 The Chancellor's announcement to freeze Air Passenger Duty (APD) at current rates is an acknowledgement that aviation will play a crucial role in the economic recovery and national growth.
Gatwick welcomes the decision but calls on the Government to do more to ease the tax burden placed on UK air passengers and the aviation sector.
UK APD - even with the freeze - is already 8.5 times higher than the European average and, when the aviation industry is included in the EU Emissions Trading Scheme (ETS) from next year, it will be one of four 'environmental' tax measures facing British airports, airlines and their passengers. These measures will hurt consumers and will stifle economic growth if not addressed.
Nick Dunn, Chief Financial Officer at Gatwick Airport said:
"It is welcome news for passengers that there will be no immediate and further hike in the tax on flying. However we shouldn't feel jubilant. The truth of the matter is that the Government's current tax regime with relation to aviation is punitive, disproportionate and unsustainable.
"As an industry we recognise our operations may impact on the local environment. That is why Gatwick has set challenging targets to reduce its emissions by 50% by 2020 and why others across the aviation industry are also making investments that will pave the way towards decarbonising flying. However as we are doing this we are, apparently, being taxed for environmental ends.
"If the Government believes that aviation can play its part in enabling the national economic recovery it would do well to consider some form of tax rationalisation or consolidation to ensure the aviation industry remains a critical pillar of the British economy."