Tour operators prepare ?2bn challenge to air tax

UK body, the Federation of Tour
, is preparing a legal challenge to the government’s
Passenger Duty
, with the aim of having it scrapped.

According to reports, if successful the legal challenge would force the
government to repay ?2bn.

Gordon Brown
doubled the duty in December’s pre-Budget report, taking the
levy on short-haul flights to ?10 from 1 February and on long-haul to ?40.

The FTO claims that under international laws included in European legislation
in 2004 the government is not entitled to impose charges on aircraft solely for
the right of transit over, or flying in or out of Britain from another country.

The Treasury though has defended the legality of the tax.

Further reading:

Air tax hike won’t stop people flying

Government faces lawsuits over air tax hike

E&Y slams air passenger tax increase

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