Passengers flying first class to be hit by tax rise in Budget

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Airline passengers in premium and first-class cabins will be hit by a tax hike, it has been introduced.

Chancellor Jeremy Hunt introduced a “one-off adjustment” to the extent of air passenger responsibility (APD) for these with non-economy tickets, corresponding to premium economic system, enterprise class and first class.

In his Budget speech, Mr Hunt mentioned the measure will “account for high inflation in recent years”.

APD for passengers in premium cabins on departures from UK airports at present ranges from £13 to £200 based mostly on the gap of the flight.

Clive Wratten, chief government of the Business Travel Association trade physique, mentioned: “The introduction of an increase in non-economy air passenger duty is disastrous for the economic welfare and wellbeing of British businesses and their employees.

“Contrary to common misconceptions, business travel is not just for the wealthy.

“This tax will hinder growth for small and medium enterprises through limiting international collaboration opportunities.

“It will hit charities, academics and researchers alongside businesses of all sizes combating rising costs in every area.

“There is no mechanism for ensuring that the monies from this tax will go into innovation in the airline sector nor into sustainable aviation fuels.

“This is therefore just another tax on British businesses.”

The PA information company has requested the Treasury for particulars of the rise.

Elsewhere in the Budget The Chancellor confirmed that the 5p per litre minimize carried out in March 2022 will be retained for one more 12 months, and gas responsibility is not going to enhance in line with inflation.

This will save the typical automotive driver £50 subsequent 12 months and produce “total savings since the 5p cut was introduced to around £250”, Mr Hunt mentioned.

When the gas responsibility minimize was first introduced, it was anticipated to save automotive drivers £100 yearly.

A Treasury spokesperson mentioned the discount is due to the autumn in the value of gas.

Government figures present the typical price of a litre of petrol and diesel at UK forecourts is round £1.45 and £1.55 respectively.

Prices reached document highs of £1.92 for petrol and £1.99 for diesel in July 2022, largely due to Russia’s invasion of Ukraine main to a rise in the price of oil.