Air passenger duty to be overhauled

The system of tax on airline passengers is set to be revamped, under new government proposals.

Under the current system, passengers pay £10 in Air Passenger Duty on European flights and £40 on flights to the rest of the world.

However, for non-economy passengers this is doubled.

The new proposals unveiled by the Chancellor Alistair Darling in his pre-budget report, however, would see the duty system reformed so that planes pay the tax rather than passengers.

Andy Harrison, chief executive of carrier Easyjet welcomed the reforms on the grounds that they are a fairer way of implementing the duty.

He said: "We have long argued the current structure of APD is in need of reform.

"A tax that penalises families but excludes private jets; and charges passengers travelling to Marrakech the same as those travelling to Melbourne, is just plain wrong.

"A structure that taxes a passenger in the newest, cleanest aircraft the same as someone in an old gas-guzzler cannot be allowed to continue."

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