Ryanair recently called on the UK government to scrap APD (Air Passenger Duty) tax for all British customers at all British airports and follow the example of its Irish counterparts in order to stimulate jobs and tourism growth.
Following Chancellor George Osborne’s decision to abolish APD for under-12s from May and the devolution of the power to cut APD in Scotland to the Scottish parliament, Ryanair is urging the UK government to axe the tax for all UK customers.
The Irish government abolished its own APD in April 2014, and as a direct result, Ryanair launched 21 new routes to/from Dublin, Knock and Shannon airports, which will result in more than 1.7m additional passengers travelling through Irish airports this year, with the VAT received from the additional tourist spend far outweighing any lost tax revenues.
A recent independent Pricewaterhouse Coopers study offered compelling evidence of the damage caused by APD in the UK and confirmed that:
- The abolition of APD would yield 0.46% of the UK GDP in the first year and at least £16bn within 3 years
- New flights and 60,000 new jobs would be created
- APD is one of the 3 most destructive taxes, alongside Corporation Tax and Fuel Duty
- Aviation is an engine of economic growth for international commerce and tourism
Ryanair again called on the UK government to ‘axe the tax’ for all and allow UK airports to become competitive once more, while stimulating jobs and tourism growth.
Ryanair’s Robin Kiely said:
“Ryanair democratised air travel for all consumers – it’s high time the UK government did the same and axed the travel tax for all. An independent study has confirmed the abolition of APD would yield 0.46% of the UK GDP in the first year and at least £16bn within 3 years, while allowing the UK to become competitive once more, and would lead to the creation of 60,000 new jobs.
Ryanair has launched 21 new routes to and from Ireland in direct response to the Irish government’s decision to abolish Irish APD, which has resulted in a 9% growth in tourism, with Ryanair delivering two-thirds of this growth and an additional 1.7m customers through Irish airports this year. The VAT from the extra tourist spend alone exceeds what APD would have recouped in another prime example of how other EU countries have returned to growth by scrapping tourist taxes.
While we welcome the move towards abolishing travel tax in Scotland and the removal of APD for under-12s from 1st May – a move we have bettered by dropping under-12s APD from 27th March, ensuring families enjoy even more savings during the Easter break – we again call on the UK government to axe the tax for all to stimulate tourism and growth.”