Air Passenger Duty

Treasury written question – answered on 30th March 2010.

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Photo of David Drew David Drew Labour, Stroud

To ask the Chancellor of the Exchequer what factors were taken into account in setting the level of air passenger duty in respect of journeys to the Caribbean; and if he will make a statement.

Photo of Sarah McCarthy-Fry Sarah McCarthy-Fry Parliamentary Secretary, HM Treasury

In reforming air passenger duty (APD) in 2008 the Government sought to ensure that flying contributes fairly to the public finances and, by introducing distance bands, to strengthen the environmental signal of the tax.

Rates are set after careful deliberation by Ministers, taking into account all relevant factors. Ticketing systems are mainly based on national territories, and as such it is straightforward to base the tax rates to specific destinations on countries, where the capital city is the natural proxy for the country. APD levels on journeys to Caribbean countries are therefore based on the distance between their capitals and London.

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