To ask Mr Chancellor of the Exchequer, whether it is his policy completely to abolish air passenger duty.
Answered on
21 January 2015
Air Passenger Duty (APD) remains an important contributor to the public finances.
However, as a key part of this government’s long term economic plan, the Chancellor has taken action on APD.
In 2015-16, over ninety-nine per cent of passengers, including many families, are set to see a freeze or reduction in rates.
Budget 2014 announced a freeze in the rate of APD for short-haul international and domestic flights for a fourth year running. In addition Budget 2014 reforms APD with the abolition of bands C and D from 1 April 2015. This will cut tax for passengers travelling to destinations such as Brazil, India, China, South Asia and the Caribbean.
Autumn Statement 2014 also announced an APD exemption for children under 12 on economy tickets, with effect from 1 May 2015. From the following year, the Government will abolish economy ticket APD for children under 16 altogether. This will save a two child family £26 on economy short-haul flights and £142 on economy long-haul flights, plus adds to Budget 2014’s adult fare savings for families flying economy to destinations like the Caribbean and Australia, taking accumulative savings to £170 and £194 respectively.