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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Holidays set to get more expensive in the New Year as tax hike kicks in

Flight prices are set to jump again in 2020 as new Air Passenger Duty (APD) rates kick in.

This is the tax that applies to all flights departing from the UK - a levy that's cost travellers more than £3.7billion in the past 12 months alone.

Introduced in 1994, APD adds £13 to the cost of every short-haul ticket, £78 to every long-haul fare and up to £172 per person, in premium class. The tax is automatically applied to the ticket price.

However, on April 6, the tax is rising again for those travelling long-haul. It means an extra £2 for economy, £4 for premium and £13 for those who choose to fly in a private jet.

This means that from April 2020, a family of four flying to Florida in economy will be forced to fork out £320 in air tax alone, up from £40 in 2007 – an increase of 700% in 12 years.

It compares to France, which, for example, charges short-haul passengers less than €5 and long-haul fliers less then €10.

Air passenger duty is a tax applied to all UK domestic and international flights (iStockphoto)

In fact, in recent years countries including Ireland, the Netherlands and Belgium have abolished APD entirely - a move MPs have warned the UK should follow to enable to the economy to flourish after Brexit .

In September, a report by the All-Party Parliamentary Group for Air Passenger Duty Reform said APD is the highest tax of its kind in Europe and that cutting it would open up dozens of new routes.

Originally billed as an environmental levy, APD was just £5 per person on short-haul flights, and £20 per person on long-haul services, until 2007, when rates doubled.

In 2009, a four-tier banding system was introduced to calculate contributions - it meant passengers would have to pay according to the distance between London and the capital of their destination.

"APD runs counter to many of the Government’s stated priorities, including increasing exports and creating jobs; its removal will give Britain’s aviation sector the chance to flourish once more, boosting connectivity and driving economic growth," the report said.

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