UK Chancellor Announces Air Passenger Duty Increases For 2021/2022
News - UK 06-Mar-2021
The UK Chancellor of the Exchequer, Rishi Sunak, recently announced the budget for the upcoming year. One of the areas he didn't mention in his statements to the public was an increase to Air Passenger Duty on long-haul flights. While the increase is modest, the airline industry said aviation was one of the hardest hit sectors and the Chancellor has ignored this by continuing on with these increases.
From April 2021
Duty on long-haul economy flights from the UK will increase by £2, totalling £82 per passenger.
Duty on long-haul premium economy, business and first class will increase by £4, £180 per passenger.
From April 2022
Duty on long-haul economy flights from the UK will increase by £2, totalling £84 per passenger.
Duty on long-haul premium economy, business and first class will increase by £5, £185 per passenger.
The Treasury document projects that APD will have raised £600m in the 2020-21 tax year, compared to nearly £3.7bn prior to the pandemic.. This is forecast to rise to £1.3bn in 2021-22, £2bn in 2022-23 and £3.1bn in 2023-24 – illustrating that the government believes it will be at least three years before we approach previously “normal” levels of air traffic.