FLIGHTS could get cheaper for staycations, under proposals to reform Air Passenger Duty (APD) tax being considered by the government.
At present, the tax is paid by airlines but added to fare costs for flights.
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It means a short-haul economy passenger pays up to £13 extra per flight.
In a new consultation, the Committee on Climate Change and other stakeholders suggested the government should introduce a frequent flyer levy.
Today, the government said it wants to reform the tax rather than punishing frequent flyers – but that it is still considering the proposals.
Options for changing the tax, include a new lower rate for flights within the UK.
What is Air Passenger Duty (APD)?
ALL Brits pay Air Passenger Duty (ADP) on flights from the UK, which varies depending on the route and the class travelled in.
Tourists also have to pay the tax on their return flight home, as the flight is from the UK as well.
Originally, APD cost just £5 for short-haul journeys and £10 for long-haul – but it can now set customers back hundreds.
Fees range from £13 for a short-haul economy flight to £176 for a long-haul first class flight.
Meanwhile, travellers flying long-haul with private jets currently have to pay £541 with ADP.
While the tax may be waived for the return leg of UK flights.
Both these proposals could make flights cross the UK cheaper, saving a family of four up to £104 for a return trip.
However, any reforms would have to be passed on by airlines and there is no guarantee.
The Treasury also hinted that long-haul ADP rates could go up in future.
It said the reforms would ensure “that those who travel furthest internationally, and consequently have the greatest impact on the environment, incur the most APD”.
The Treasury is now seeking views on the proposals, with the deadline set on June 15, 2021.
It comes as APD rates for long-haul flights from Britain are already set to increase by £2 per economy ticket from April, up from £80 to £82.
While travellers in premium, business and first class cabins will pay £5 extra, from £176 to £181.
Meanwhile, short-haul rates remain frozen.
The change, revealed in Treasury documents accompanying Chancellor Rishi Sunak’s Budget, is in line with the RPI measure of inflation.
APD raised £3.6billion in tax for the government in 2019/20.
However, the amounts have fallen sharply since then due Covid, with receipts between April 2020 and September 2020 down 86.9%, compared to the same period in 2019.
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The APD change was made just hours after Ryanair boss Michael O’Leary told the Transport Select Committee that APD is “ridiculous” and “hits the poorest people hardest”.
The aviation industry has long called for APD to be reduced or even abolished, claiming it is an unfair burden on passengers and one of the highest taxes of its kind in the world.
Regional airline Flybe, which collapsed in March 2020, blamed APD for contributing to its financial struggles.
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