BA slams 'per plane' tax in prelims

BA has warned its shareholders that an overhaul of airplane tax system may rock its fortunes in the future.

In releasing its final results today the aviation giant issued a rocket to the Treasury which is replacing air passenger duty levies with a 'per plane' tax.

BA said: 'HM Treasury announced its intention to replace Air Passenger Duty with a new 'per plane' tax with effect from November 2009. This new tax will distort competition and may adversely impact our revenue.'

The per-plane tax is based on emissions as opposed to the flat rate APD. Aviation experts have said that the move could have environmental benefits over and above the present per-passenger APD because it incentivises aircraft manufacturers and airlines to reduce emissions and fuel consumption.

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