Government to reconsider Caribbean APD charges

Hopes are growing that the government will look again at disproportionate increases to Air Passenger Duty (APD) slated for flights to the Caribbean.

Cheapflights reported in July that the simplistic way in which the controversial tax is calculated means that Caribbean passengers will be unfairly penalised.

When the new rates come into effect next month, travellers to the Caribbean will pay more than those flying to America – despite much of the US being further away.

The discrepancy is down to the way in which APD charges are categorised, with countries being banded according to how far their capital city is from London.

Crucially for transatlantic passengers, this places all US destinations in Band B as Washington is some 3,675 miles from London. Because America is such a vast country, that means even destinations as far off as Los Angeles (5,454 miles) will enjoy the lower rate.

By contrast, passengers on flights to Puerto Rico, which is just 4,231 miles from London and so attracts a much lower CO2 footprint, will be subject to the higher charges.

Confirming that the government is aware of the discrepancy, Treasury Minister Lord Myners told the House of Lords Whitehall will consider the plans "carefully".

"This consideration is still in progress," he said. "Any carve-out for the Caribbean with respect to this tax, such as a specific exemption or provisions, could raise questions about both legality and potential distortions between comparable destinations.

"The situation in the Caribbean economies is one of the factors being considered in the current review, the outcome of which will be announced prior to November 1."

From the beginning of next month, APD charges for economy passengers will rise to between £11 and £55 per person. They will then go up again in 2010 to between £12 and £85, while the levy will be doubled for people travelling in Business and First Class cabins.

The Caribbean Tourism Organisation is urging passengers to write to their MPs about the proposed APD hikes before a government review is publish next week.

© Cheapflights Ltd

Comments

[Linda]

I hope that the position of the hefty increase in duty for passengers to Australasia will also be considered at this review, as well as the Caribbean case.
Cynically I note that the increase to European destinations has not risen by much in comparison - is the Government frightened of the backlash from the large number of holidaymakers seeking the sun
in Europe? And therefore has hit the areas where travel is often for the purposes of family re-unions?
I save for a family visit to New Zealand once every two years, but future visits are looking grim.
New Zealand has been hard hit. It's lucky for the ones imposing this vicious increase that their fares are taken care of - often by the tax payer.
The charges listed are one-way also - look at the return charge and it is much much more.