ABTA The Travel Association has responded to the Budget announcement regarding Air Passenger Duty reform.

Mark Tanzer, the association's chief executive, said: “ABTA strongly welcomes the Chancellor’s announced cut to Air Passenger Duty and changes to the banding system as a first step in the reform of this damaging tax. Moving all long-haul flights into band B of APD at current levels will save passengers over £200m annually, and should boost travel and tourism as well as promote greater UK connectivity.

“ABTA has been at the forefront of campaigning to reform and reduce APD, and today’s announcement is a clear recognition from the Government of the negative impact this tax is having.

“Whilst the new Budget is very much a step in the right direction, ABTA will continue to call for a reduction in overall rates of APD which, at their current band A and B levels, will continue to inhibit the contribution of the travel and tourism sector to growth and employment. ABTA will also review any potential anomalies created by the new banding system, and work with Government to mitigate their impact.”

This will take effect from April 2015. For example, at current levels a family of four will save £112 on flights to Sydney and £64 on flights to Cancun, Mexico.

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