British Government increases Air Passenger Duty

Chancellor of the Exchequer, Alistair Darling, announced rises in yesterday's pre-Budget report that will add £15 in tax to a flight to Australia from November 2009 and £45 from November 2010.

He also announced the creation of a new four-band APD system, instead of the current two bands, from November 2009:

• Bands A and B will cover Europe
  
• Band B will extend 4,000 miles to destinations such as Egypt, Bahrain, the Gambia and the US
  
• Band C will take in the Caribbean
  
• Band will cover Australia and New Zealand
  

The standard rate of APD will rise by £1 to £11 but band B will rise £5 to £45, band C will be £50 and band D £55 from November 2009. These will be followed by further rises in November 2010.

Source: Travel Weekly

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British Government increases Air Passenger Duty