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Cutting APD 'would help economy'


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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