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Cutting APD 'would help economy'

21/03/2012

Cutting APD 'would help economy'

The World Travel and Tourism Council (WTTC) has said the UK economy would benefit hugely if Air Passenger Duty (APD) was abolished.

A report for the WTTC by forecasting consultants Oxford Economics found that scrapping the tax would boost passenger numbers. This would create an extra 91,000 jobs and rake in an additional £4.2 billion for the economy within a year.

Falling air travel costs would also lead to an increase in consumer spending, the report said.

APD, which was first introduced 18 years ago, will rise by 10% in April and is expected to raise the cost of plane tickets for a typical family flying to southern Spain by £52. Families flying to Florida will have to pay an additional £260, it is believed.

Those travelling to Australia will have to pay an extra £368, meanwhile, making it more difficult for families to budget for flights and other holiday essentials such as travel insurance.

According to the WTTC, the UK Government collects an additional £2.8 billion in tax because of APD, more than any other country.

Copyright Press Association 2012

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