25 March 2011
In his Budget speech to parliament, Osborne he would delay a planned rise in APD for one year, while also looking at a change to the ‘rather arbitrary banding system of APD that appears to consider the Caribbean to be further away than part of the US and Hawaii'.
Osborne also announced the introduction of APD on private jets and said the government will seek to change international law to allow a per plane tax to be brought in.
He said the government had ‘tried every possible option' to bring in a per plane APD, but had to conclude that it was ‘illegal in international law'.
The travel industry has welcomed the news, while airlines reacted by saying Government is still not listening to the travel industry's calls for a fairer tax.
Wexas Managing Director, Steve Allen, said: "We welcome the deferral of a rise in APD and the decision to review APD banding."