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Travelers flying in premium or first-class sections of airlines will experience a rise in taxes, according to an announcement made.
Chancellor Jeremy Hunt announced a “one-off adjustment” to the level of air passenger duty (APD) for those with non-economy tickets, such as premium economy, business class and first class.
During his Budget speech, Mr. Hunt stated that the measure will factor in the effects of increased inflation over the past few years.
The cost of the Air Passenger Duty for individuals traveling in premium cabins and departing from airports in the UK varies from £13 to £200, depending on the flight distance.
The CEO of the organization representing the Business Travel Association, Clive Wratten, expressed concern over the implementation of a non-economy air passenger duty hike. This change could have devastating effects on the financial stability and health of UK companies and their staff.
Despite commonly held beliefs, traveling for business is not exclusive to the affluent.
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“This tax could impede the growth of small and medium-sized businesses by restricting their ability to collaborate internationally.”
This will affect not only businesses of varying sizes struggling with increasing expenses, but also charities, academics, and researchers.
There is currently no system in place to guarantee that the money generated from this tax will be specifically directed towards promoting innovation in the airline industry or the development of sustainable aviation fuels.
“This is merely yet another taxation imposed on UK businesses.”
Jeremy Hunt is giving the yearly financial statement in the House of Commons.
The request for information about the raise has been submitted by the PA news agency to the Treasury.
In other parts of the Budget, the Chancellor promised to keep the 5p reduction on fuel prices in effect until March 2022, and there will be no rise in fuel taxes to match inflation.
Mr. Hunt stated that this will result in an average savings of £50 for car drivers next year, making the total savings since the 5p reduction was implemented approximately £250.
Initially, when the reduction in fuel taxes was declared, it was estimated to result in a yearly savings of £100 for car owners.
A spokesperson from the Treasury stated that the decrease is a result of the decline in fuel prices.
The data from the government reveals that the typical price for one liter of gasoline and diesel at petrol stations in the UK is approximately £1.45 and £1.55, respectively.
In July 2022, petrol prices soared to a record high of £1.92 while diesel prices hit £1.99. This was mainly attributed to Russia’s invasion of Ukraine, which caused a spike in oil prices.
Source: independent.co.uk
