Britain’s APD tax set to rise again

Virgin Atlantic announces it will absorb increases from tax.

ST. JOHN’S, Antigua, Friday March 2, 2012 – Britain’s controversial Air Passenger Duty (APD) tax is expected to increase again from April 1, resulting in an eight per cent hike in the cost of a ticket.

This increase, which also applies to passengers who booked flights before the new rates were announced, could translate to British travellers to the Caribbean within a 4,001 to 6,000 mile band paying as much as US$257 more on tickets, up from US$238.

But as Caribbean governments continue to struggle with the initial addition tax, one airline has stepped forward to shoulder pending increases of the tax.

Reports indicate that Virgin Atlantic airline will not be passing on the increases to passengers, but will absorb “hundreds of thousands of dollars” by paying the tax itself to shielf passengers – at least for now.

This was confirmed by the airline’s chief executive, Steve Ridgway.

Meanwhile, the Caribbean Tourism Organisation continues to be at the forefront of the region’s protests against the tax, stating it is discriminatory. Click here to receive free news bulletins via email from Caribbean360. (View sample)