'Holiday tax' to rise as government plans to hike cost of flying

'Holiday tax' to rise as government plans to hike cost of flying

Vacation costs are expected to rise after the government announced that it plans to increase the passenger tax.

The move comes as airlines and tour operators suffer from the effects of the coronavirus pandemic and various travel restrictions. Industry leaders had asked for a 12-month break from what was previously known as the “vacation tax”.

The UK government has announced that it will increase the fee.

The fees for short-haul economy flights to European destinations from April 2021 currently amount to GBP 13 per trip and for premium classes to GBP 26, reports the specialist journal Weekly trip .

However, economy medium and long haul flights cost an additional £ 2 per passenger in APD, with the fee for one fare being £ 82.

The fee for medium and long haul Premium Class seats increases by £ 4 to £ 180, which continues to add hundreds of pounds to a transatlantic break for a family of four.

The travel organizations Abta, Airlines UK, which represent British Airways, easyJet, Ryanair and other well-known airlines, as well as the Airport Operators Association have called for the levy to be suspended in order to encourage air traffic if the restrictions are lifted.

Abta CEO Mark Tanzer said last week, “We believe the Chancellor should consider cutting the APD before next summer to motivate people to book their holidays in 2021.”

Meanwhile, Tim Alderslade, CEO of Airlines UK added: “The government should come up with a targeted package of support measures, including a 12-month APD waiver, to ensure our industry can play an important role in the economic recovery. “

He warned of a brutal winter for industry.

The Passenger Tax is a tax on passenger flights from all UK airports.

The levy is billed to the airlines, but much of the cost is passed on to the vacationers.



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