Short-haul air passenger duty (APD) rates for 2019-20 will remain frozen as they have been since 2012, and there will be no increases in long-haul rates for economy passengers, although there will be an increase in the business class multiplier, the Chancellor announced in the Budget
The long-haul rate will be frozen at the 2018-19 rates for economy flyers, while the rates for premium economy, business and first class will increase by £16 and for those travelling by private jet by £47.
The measure freezes the reduced band B APD rate at £78 for 2019-20. It also increases the ratio between the reduced and the standard rate from 1:2 to 1:2.2 and increases the ratio between the reduced rate and the premium rate from 1:6 to 1:6.6. The ratio of rates for short-haul classes remains the same as at present.
This measure will be effective from 1 April 2019, and Treasury estimates indicate it will bring in an additional £25m in tax annually from 2019/20 until 2022/23, when the increased tax take is predicted to rise to £30m.
Report by Pat Sweet
