Flights from the UK about to get pricier
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Traveling to and from Britain? The taxman is calling, and your tickets are about to get more expensive.
The UK government will double the air passenger duty for flights departing the UK, effective February. For short flights, the estimated effect on the total price of a ticket is a 7% net increase. For long-haul flights, the tax goes up £20 (~US$40) for economy class and £40 in business class. Ouch.
The monies are supposed to go toward reducing the environmental effects of air travel, according to the public statement by the Chancellor of the Exchequer. All well and good, but how exactly will the UK government be doing that? Are the added revenues going into a research fund, or into the general budget?
Update: As the Global Traveller astutely notes, this could lead some savvy tax-dodgers to book short-haul flights from the UK to mainland Europe, where they then board their (less-taxed) long-haul flight. If enough people sacrifice nonstop convenience for cash savings, then this could lead to an increase in takeoffs and landings, thereby backfiring against the stated environmentalist goal. Business travelers probably would suck it up and pay the tax, but leisure travelers might hop over to Amsterdam, Paris, or Frankfurt…


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January 15th, 2007 at 9:22 pm |
[…] The reason is the increase in the Air Passenger Duty, announced in December, with monies intended to go toward projects that reduce global warming. (See here for a backgrounder, including some speculation on how the increased taxes might boost traffic at Frankfurt, Paris, or Amsterdam.) […]