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Graham Pickett, airline partner at Deloitte, comments: “The travel and aviation sectors will undoubtedly welcome the Chancellor’s freezing of air passenger duty (APD) and his proposal to review certain areas of the tax.

“Taxes are rarely popular, but I would expect an aviation tax system that promotes growth, is easily understandable and rewards environmental efficiency to be broadly welcomed by the aviation sector and its customers. By announcing a consultation, the Government is acknowledging that our current system does not fulfil this vision.

“The consultation primarily focuses on fairness and opportunities to simplify APD, the proposal to tax private jet passengers in a similar way to other travellers being a good example of this. Other proposals will also help, such as a reduction in bandings to eliminate situations where a flight to the Caribbean attracts more APD than a longer flight to the USA.

“However, in order to achieve an aviation tax system that also promotes growth and rewards environmental efficiency, government and the aviation sector will need to agree on some quite difficult issues, such as whether APD can be charged on a per plane or per passenger basis and establishing a tax rate which strikes the right balance between raising a material amount of tax revenue, while promoting the UK as an international hub for transport and business in general.”

About Deloitte
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.

Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.

The information contained in this press release is correct at the time of going to press.

Member of Deloitte Touche Tohmatsu Limited.

Contacts

Name:  Celine Gordine-Wright

Company:  Deloitte UK

Phone:  +44 (0)20 7007 6384

Email   cgordinewright@deloitte.co.uk