The government has announced that Air Passenger Duty on all direct long-haul flights from Northern Ireland is to be cut.
In a move that is likely to see cheaper flights from Belfast to New York, the long-haul rate of taxation will fall from £60 to £12 per flight for those travelling in Economy Class. Business and First Class passengers will pay £24 in tax per flight compared to the £120 charged today. The new rates of taxation will come into effect on 1 November.
The decision was announced by the Chancellor, George Osborne, yesterday after it emerged that Continental Airlines was preparing to pull the only long-haul flights operating direct from Northern Ireland to the US. Thanks to government intervention Continental Airlines Flight CO95 from Belfast International to New York/Newark will continue to operate.
The Northern Ireland Assembly will be responsible for managing the reduction in Air Passenger Duty. The government pushed through the reduction arguing that Northern Ireland was in a unique situation to attract international visitors: a number of other European countries, including Ireland, have either scrapped or are reducing their taxes on flying in a bid to encourage tourism.
According to the British Air Transport Association (BATA), which represents ten member airlines – bmi, BA, DHL, easyJet, Flybe, Jet2.com, Monarch, Thomas Cook, Thomson Airways and Virgin Atlantic – Britain imposes the highest taxes on flying in the world – more than 8.5 times the average for the rest of Europe. A family of four on an average sunshine holiday to Florida will pay at least £240 in tax.
“These taxes damage our international tourism industry that is the UK’s third-highest export earner and makes the annual sunshine holiday less affordable for Britain’s hard-pressed families,” Simon Buck, Chief Executive of BATA.
The government is expected to confirm a double inflation increase in Airport Passenger Duty at the end of November.
(Image: magnusbrath)
