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‘Travel Tax’ Set For Take Off

26 May 2010 No Comment

The new coalition government in the UK are set to levy a new tax that could result in higher air fares to Lanzarote and all other destinations across the world.  According to recent news reports in the British media.  With the Liberal Democrat faction leading calls for a new per plane tax to replace the existing Air Passenger Duty charge.

Initial reports suggest that under these new plans short haul charges would go up from £11 to £18 per person, with higher rates imposed on business class passengers and long haul flights.

According to an ABTA spokesperson these proposed tax increases could be devastating to an industry that is struggling in the wake of a recession and the volcanic ash crisis.  ”What is clear is that a tax rise of that level will impact not only on jobs but also on the affordability of holidays, affecting those people that can least afford it. While we feel the move to a per plane duty is a fairer system, the key is the level at which it is imposed.”

Whilst a spokesperson for Skyscanner stated: “Airlines are already struggling to deal with record fuel prices and, while initially this policy may appear to remove financial burden directly from passengers, ultimately the airlines will still need to manage this cost, so it will inadvertently be passed on to consumers.”

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