Holiday makers to pay more tax from April 2012

Added 05/12/2011

Baggage carousel

The Government has confirmed Air Passenger Duty (APD) will increase by 8-10% from 1st April 2012.

The increase, which is twice the current rate of inflation, is to be applied to all flight departures from UK airports from 1st April 2012, regardless of when the flight was booked.

This means that you can’t escape the increased charges by booking your holiday early, and even those that have already booked will be faced with an additional charge to cover the increased tax.

If you have already booked a flight, you can expect to be contacted before your departure with a bill for the increased charge. Although you may be lucky, as some airlines and tour operators, including Thompson and First Choice are currently considering whether they are able to absorb the cost or will have to pass it on to customers.

You could be shocked to learn just how much of the cost of your flight is actually tax being passed on to the Government.

For economy, short haul flights it’s not too bad, with APD rising from £12 to £13. But if you are planning to travel long haul or upgrade your seat to premium economy or business class the proportion you are paying in tax can rise significantly.

Tax on economy departures to the US, Egypt, Dubai and other destinations in band B will increase from £60 to £65.

Tax on economy flights to the Caribbean, Mexico, East Asia, Thailand and other countries in band C will go up from £75 to £81.

And tax on departures to Singapore, Australia, New Zealand, Argentina, Chile and other destinations in band D will rise from £85 to £92.

You might also think twice about upgrading to premium economy or business class as APD on these fares is likely to be double the rates listed above.

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