Travel Desk

London MEP Syed Kamall has lobbied the European Commission to reform the Air Passenger Duty in the UK following plans by the Labour Chancellor Alistair Darling to sharply increase air passenger.

The proposed new air passenger duty will tax British passengers more heavily, based on four 2 000 mile bands from London.  The "APD" will fall into four bands – with passengers being charged according to how far they fly. The increases, planned from November this year and November, 2010, will hit medium- and long-haul travellers hardest reports the Daily Telegraph in April.    

The travel industry is facing extremely tough trading conditions, and the new tax has attracted criticism from travel industry groups.

Environmental lobbyists have also poured scorn on the APD with criticism the tax is encouraging air passengers to believe that they are doing their bit for the environment, making them less likely to contribute to carbon offsetting schemes.

“APD was doubled two years ago, making air travel from the UK the most heavily taxed in the world,” said Willie Walsh, the chief executive of British Airways to the Daily Telegraph. “The Government’s own figures show that British airlines already meet their environmental costs, so there can be no ‘green’ justification for these additional taxes.”  

Mr Kamall has also underlined his concerns the damage the APD could do to developing countries whose economies rely on British tourism, "this new tax seems to arbitrarily punish British consumers for having associations more than 2 000 miles away."

Speaking to the London Daily News Syed Kamall MEP for London said:

"One of my constituents has pointed out that the new rules on air duty mean that the two airports on the island of Cyprus will be taxed differently, as one (Paphos) is just inside the new 2 000 miles limit and the other (Larnaca) just outside. As Cyprus is a very small island, this treatment between the two airports seems very rigid. Furthermore, the air passenger duty seems to hinder the movement of some European consumers simply because they have associations or wish to travel more than 2 000 miles."

In a question to the European Commission Mr Kamall said:

"If Mr Darling's air passenger duty is a breach of free movement, one of the fundamental rights of the European Union. Also, does the fact that the duty varies for passengers travelling to two different points within the European Union or within the same Member State breach any EU regulations? If this is indeed the case, what actions does the Commission propose to take in order to protect European Union travellers from this unlawful duty?"
 
The response by the European Commission given to Mr Kamall:
 
"Answer given by Mr Tajani on behalf of the Commission
The Commission is aware of the recently announced plans to modify the existing Air Passenger Duty in the United Kingdom (UK). However, the Commission understands that the UK authorities have not modified the air passenger duty yet."

"The Commission will contact the authorities of the United Kingdom to ask for more information on these plans to modify the air passenger duty."

"The relevant departments in the Commission will then review this modification to assess its compatibility with Community law. Should this assessment lead to doubts regarding the compatibility of this tax regime with Community law, the Commission will decide on the appropriate steps to be taken." 

photo credit: Syed Kamal Euro MEP London - London Daily News Copyright