TaxCorporate TaxTravel tax ‘bungle’ costs industry £47m

Travel tax 'bungle' costs industry £47m

Package tour operators to pick up a £47m bill because of the way air travel tax is introduced

Gordon
Brown
has been harshly criticised by package tour operators for
bungling the introduction of new tax 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

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