Government faces lawsuits over air tax hike

The decision by the government to increase
passenger duty
by £1bn could see it being sued by airlines and tour

The Board of Airline Representatives,
whose members include British Airways and Virgin Atlantic, said it was
considering legal action over the increase in the passenger duty,

The government has already been forced to defend the rise with the Treasury
saying that the decision was legally watertight and it was up to airlines
whether they passed the cost on to passengers.

The increased levy means that from Thursday this week people flying out of
the UK pay £10 on short haul flights and £40 on long haul trips in economy class
(a doubling of the rate in both cases).

Further reading:

E&Y slams air passenger tax increase

Travel tax ‘bungle’ costs industry £47m

Brown targets air passengers to bear PBR burden

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