Travel tax 'bungle' costs industry £47m

Gordon Brown has been harshly criticised by package tour operators for bungling the introduction of new taxes on air travel.

Tour operators have claimed that they will have to pick up a bill for £47m because they will have to pay the extra duty for holidaymakers who booked flights in advance.

The new rules come into effect from the start of February, but until then operators will be unable to claim the additional amount from customers, the Daily Telegraph reports.

Shadow chancellor George Osborne said Brown had failed to think through his 'bungled raid on the travel industry'.

The Treasury said it had taken all factors into account when making their decision, including falls in oil prices.

Further reading:

Tax rises on flights in PBR

Tories put carbon tax plans on the table

Easyjet slams tax on air travel