And you think APD is a bad idea?
From The Sunday TimesMarch 11, 2007
"Tories plan to slap tax on frequent flyersDavid Cracknell, Political Editor
AIR PASSENGERS will be penalised with “frequent flyer” taxes under Conservative proposals, which will be regarded by the airlines as a declaration of war.
The new tariffs will be based on either the number of flights taken or the annual distance travelled. Families who take just one package holiday a year will be protected, but for subsequent flights the tax will escalate so that passengers pay more the further they travel.
The Conservatives will also consult on whether to introduce further taxes, such as applying Vat to domestic flights or introducing fuel duty. The airline industry is currently exempt from the levies imposed on motorists for petrol and diesel.
These measures would replace air passenger duty, which is charged at £10 for short flights, rising to £80 for long-haul first-class flights.
Airlines could also be hit by a flight tax, levied on each plane journey, which the Tories say would reward cleaner engines and deter carriers from operating planes half empty.
But the party acknowledges that these costs are likely to be passed on to passengers by way of higher ticket prices.
In a leaked copy of the Tory plans, obtained by The Sunday Times, George Osborne, the shadow chancellor, says he wants the tax system to be rebalanced away from jobs and families and towards polluters — “pay as you burn, not pay as you earn”.
He writes: “The current system of aviation taxation is fundamentally flawed. In particular, air passenger duty is not directly linked to carbon emissions and provides no incentives for airlines to use more fuel-efficient aircraft. Even the government admit that it is a ‘blunt instrument’.” The bold measures, which could provoke a backlash from frequent flyers, such as business travellers, city hoppers, sports teams and even MPs themselves, are designed to prove that the Tories under David Cameron are serious about cutting greenhouse gases.
A consultation document on aviation tax will be unveiled at a “green summit” hosted by the Tory leader, who will be joined by Sir Terry Leahy, the Tesco chief executive, and other leading businessmen.
The Tories’ approach on air tax is at odds with Gordon Brown, who insists that it is more effective to secure international agreements on cutting emissions from planes, for example, by bringing air travel into the scope of the European Union emissions trading scheme.
The chancellor, who is likely to replace Tony Blair in the summer and face Cameron at the next general election, argues that simply introducing domestic taxes unilaterally would be difficult to enforce and would disadvantage the airline industry.
Osborne said yesterday further taxes were necessary to cut UK aviation emissions, which he said were on track to account for a quarter of all discharges by 2050. He promised, however, that the extra revenue would be used to cut taxes elsewhere.
Osborne said: “With these proposals we are prepared to take tough, long-term decisions to turn rhetoric about tackling climate change into reality.
“We won’t shy away from difficult decisions. We are saying taxation on aviation needs to rise, but crucially we want taxes to be directed at dirty planes and frequent flyers. And we don’t want to tax people out of their one package holiday a year.”
And a nice extra for the Scots and those north of London
Tory air tax plan 'ignores Scots flyers'
TORY leader David Cameron was today accused of ignoring Scottish holidaymakers with his plan to allow families to make a 2000-mile round-trip to the south of Spain without paying his new air travel tax.
Yesterday the Tory Leader and his shadow chancellor said their plan would allow a "green air miles allowance" before hitting travellers with an extra duty.
They claimed the 2000-mile limit before imposing a flight tax of £40 or more would enable hard-working families to keep their southern Spanish holidays in the sun while hitting frequent flyers and long-haul businessmen.
But former transport secretaries Gavin Strang and Stephen Byers have worked out that while travellers flying out of London's Heathrow, Gatwick or Stansted airports would be able to get to Spain without paying the extra charge - those flying from Edinburgh Airport would not.
Barcelona is beyond those flying from Edinburgh at 1040 miles one-way or 2080 return, compared with Heathrow to Barcelona at 712 miles or 1424 miles return"
How will these plans affect the members who own places in PP? What will happen to your properties value?
One holiday abroad a year? How often do you go right now and how often could you go after these plans come into force?
Take care.
Robjay
