United Kingdom’s Chancellor of the Exchequer, George Osborne, has announced the abolition of Air Passenger Duty (APD) for children under 12 from next May.
Osborne also pledged to abolish APD for children under 16 as of May 1, 2016.
The announcement, part of today’s Autumn Statement by the Treasury, could provide a significant fillip to travel. The industry coalition A Fair Tax on Flying launched a campaign to demand the scrapping of APD on under-12s only last week, media reports out of the UK said.
The Caribbean Hotel & Tourism Association (CHTA) says it is celebrating the abolition of the Air Passenger Duty (APD) for children 12 years of age and under, starting in May 2015 as announced today by British Chancellor George Osborne.
“We welcome today’s announcement by Chancellor Osborne about the elimination of the Air Passenger Duty on children as this alleviates costs for family vacations and essentially cuts the taxes in half for a family of two adults and two children,” said Jeffrey S Vasser, CEO of CHTA.
“The timing of the abolition of the tax will further benefit families as vacations in the Caribbean are reduced for summertime travel,” he added.
Today’s announcement adds to the good news Chancellor Osborne released earlier this year with regards to reforming the current four-band system for the APD to a two-band system starting April 1, 2015, CHTA said in a release.
Under the new two-band system, the release added, all long-haul flights (over 4,000 miles) will be moved into band B, which means UK customers travelling to the Caribbean will pay the same tax as if they were travelling to the United States.
According to the budget, from April 1, 2015, the tax on long-haul flights between 4,001 and 6,000 miles will be reduced by £14 per person, while those over 6,000 miles will be cut by £26.
With today’s announcement, a family of four (two adults, two children) could save over £140 starting May 2015, CHTA said.
