Minister for Infrastructure wary of UK Government introduction of "Per Plane Duty"Tax - Airport Press Release

In last Tuesday’s UK budget, plans to take forward proposals for a Per-Plane Duty to replace Air Passenger Duty (APD) were announced. Minister for Infrastructure Phil Gawne MHK was pleased to note that further increases on APD were not being introduced in the meantime, given that the previous UK Government had already stipulated another increase in November 2010.

Air Passenger Duty is the UK’s unilateral aviation tax, currently £11 per passenger each way for IOM flights to and from the UK and Ireland (on aircraft with more than 20 seats), which is collected by airlines and operators and paid to Customs and Excise. The rate is due to increase by another pound each way from November this year.

Further increases had been expected to have been announced or that VAT might have been applied to domestic air fares, however Minister Gawne was relieved this was not the case. The Minister said: ‘It comes as no surprise that the UK Government will switch from a per-passenger to a per-plane duty, however I am pleased to note that the UK Government will consult the airports and airlines first. It is clearly very important that the Isle of Man participates in this consultation, ensuring that the UK Government considers the impact of a per-plane duty on the viability of our routes and takes into account regional connectivity.’

He went on to say: ‘The Isle of Man Government will explore the options and talk with our airline partners keeping in mind that we want to ensure that the Isle of Man’s air travel remains affordable.’

Further information: Phil Gawne MHK, Minister for Infrastructure Tel: 416221 or 834844