Minister attacks plane tax change

15.07.08

A Government minister has written to the Treasury criticising plans to replace air passenger duty (APD) with a tax on aircraft, the Times newspaper reports. The move is supported by major travel groups and easyJet, but opposed by BA, other major airlines and the US Government.

In a letter last month trade minister Digby Jones told Treasury minister Angela Eagle that the tax would damage the competitiveness of British industry. The leak of the letter, revealed in the Sunday Times, follows recent reports of a possible about-turn on the tax change after parliamentary under-secretary for transport Jim Fitzpatrick said: ‘There are strong arguments that we should not proceed with the transition.

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