Chancellor ‘considering further rise in air tax’ in this week’s Budget

rise in business class air tax
By Linsey McNeill
04/03/2024
Home » Chancellor ‘considering further rise in air tax’ in this week’s Budget

Chancellor Jeremy Hunt is reportedly considering pushing up air passenger duty on business class flights to fund other tax cuts.

He is considering a rise in APD for premium seats along with other measures to target the wealthy in Wednesday’s Budget, according to the Telegraph.

The Chancellor is looking to raise hundreds of millions of pounds to fund a potential 2p reduction in income tax, which Tory MPs believe could boost the party’s chances of winning the next election.

However, Mr Hunt vowed last September not to impose any new taxes on the aviation industry.

There are three rate bands for APD: a reduced rate for economy, standard for business class seats, and a higher level for private jets.

Business class passengers pay from £13 for domestic flights up to £200 on the longest international journeys.

A small rate increase for business class travel from 1April had already been announced. It will push up the tax to £14 on domestic flights and £202 on the longest international flights.

Currently, APD raises a total of £3.8 billion a year for the Treasury.

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