Why Is the UK Boosting Taxes on Long-Haul Flights?
Photo Credit: Passengers will pay more tax on long-haul flights to destinations like Japan. Unsplash / Justin Lim
Skift Take
Tourists will be footing the higher rate with a new "ultra" long-haul tax as part of plans to reduce emissions just as international travel is starting to ramp back up. Still, many businesses will welcome the reduction in passenger taxes on short-haul flights.
The UK government is set to increase its aviation tax, known as an air passenger duty," on long-haul flights — seen as a highly political move ahead of hosting the COP26 United Nations Climate Change Conference next week.
"We're making changes to reduce carbon emissions from aviation. Most emissions come from international, rather than domestic, aviation, so we're introducing a new ultra-long haul band ... with an economy rate of £91 ($125)," said Chancellor of the Exchequer Rishi Sunak on Wednesday.
But the move may been seen as a head-scratcher to travel industry leaders since the tax comes as destinations are increasingly opening up to international travelers and airlines are still reeling from the loss of revenue from lucrative long-haul flights since the start of the pandemic.
However, the UK will reduce the passenger tax on domestic short-haul flights. It’s a contrarian development to many of the UK's European neighbors, which want to
