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BA slams 'per plane' tax in prelims

BA warns of turbulence ahead as change from air passenger duty to per plane tax draws closer

David Jetuah, Accountancy Age 16 May 2008
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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.

Further reading:

Fair value hits 'free' flights


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