A holiday for a family of five could rise by more than £50 due to a tax hike expected in today’s budget. Flight prices are expected to rise with the price of inflation.
Government sources told the Mail that flight tax will rise with the RPI rate of inflation, more than 11 percent for much of last year.
Air passenger duty was due to be charged at £87 per person for an economy class flight to medium and long-haul destinations.
This category includes flights to holiday hotspots such as Egypt, the Caribbean islands or Cape Verde.
However, if the tax hike goes ahead in today’s budget, air passenger duty will soar by at least another £10.
A family of five will see the price of an international holiday increase by £50 if air passenger duty rises with inflation.
Business-class passengers will see prices rise by more than £20 per flight, or over £80 for a family of four.
Long-haul passengers flying to destinations such as Thailand or Australia will see prices rise by around £11.50 above the expected price of £91 per economy passenger.
Short-haul passengers flying to destinations such as Spain or Greece will see a small rise of below £2 for an economy seat.
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A new air passenger duty system is due to start on April 1 with a new three-tier scheme based on distance flown and carbon emissions.
Tourists travelling more than 5,500 miles will pay the most, while those flying under 2,000 miles will pay the least.
The tax is paid on outbound flights taking off from the UK but not on inbound journeys into the country.
Some airlines have complained that the UK will have one of the highest air taxes in the world.
Although the tax is paid by airlines, increases are usually passed onto the customer through ticket prices.
Ryanair, easyJet, Virgin Atlantic and British Airways are among the airlines to have expressed opposition to the plans.
They would like the Government to shield passengers from the price hike as happened with train tickets.
Rail passengers saw ticket prices rise by 5.9 percent, far lower than the rate of inflation.
British airlines are especially annoyed as they are set to face a higher tax burden than their competitors in the USA.
US President Joe Biden has offered the industry subsidies under his Government’s Inflation Reduction Act.
In a joint letter to Hunt, airline bosses said: “When our competitors are providing such generous support to their aviation sectors, it makes no sense strategically to be increasing costs for UK airlines.
“We consequently urge the Government to help to reduce the burden both on travellers and the sector and forestall any RPI rises that risk an outsized impact on our aviation sector, the competitiveness of UK airlines and the wider economy.”
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