Dominicans based in the UK travelling to the Caribbean on Virgin Atlantic are likely to be among air passengers benefiting from a decision by that airline not to pass on an upcoming increase in Britain’s controversial Air Passenger Duty – APD.
The APD travel tax, which Caribbean tourism destinations describe as unfair and discriminatory, is scheduled to increase by 8 per cent next month.
Reports out of Antigua suggest that Virgin Atlantic will temporarily absorb “hundreds of thousands of dollars” as it shields passengers from the proposed APD increase.
According to the Observer Media Group, the airline has decided not to pass on “theses unfair retrospective” increases to passengers and will instead pay the surplus itself.
Virgin’s Chief Executive Steve Ridgway is reported to have outlined his airline’s position on the matter to British Chancellor George Osborne ahead of the scheduled April 1st APD hike.
The 8 percent increase means that in the next two months British travellers to the Caribbean region which falls into the 4,001–6,000 miles band, will pay US $257 extra on a ticket, up from US $238.
The Observer says despite strong concerns expressed by Virgin Atlantic and the wider aviation industry, the rises will be retrospective and will also apply to passengers who booked tickets before the new rates were announced.
It says Ridgway urged the chancellor “to use next month’s (UK) budget to correct the strangling effect of the tax on economic growth and tourism.”
The carrier’s letter highlighted the anti-competitive nature of aviation tax in the UK, with the nearest comparable air tax rates in Germany set at approximately half those of Britain’s.
The UK’s Office of Budget Responsibility forecasts that the APD will provide £3.2 billion (US $4b) receipts by 2015 and £3.8 billion by 2017.
Virgin Atlantic, British Airways and others are all campaigning against this latest tax rise. The UK Government says that avition is exempt from other taxes (basically VAT) and must pay its share. They also claim the tax is ‘environmental’. Any campaigning that gets a change would be welcome 4progress, not sure how it is racism though Jeanne Julien, as it applies to everyone, irrespective of colour. Could you explain?
Can we start a campaign to protest (not boycott) at the Royal visits in the various islands that will get media attention.
Good move Mr. Branson, that is how you do business. When British Airways start having less passenger volume for the Caribbean, maybe they might recomsider.
More institutional racism and more black tax.
Thank you Mr. Branson and company…shame about your fellow country men in the Conservative Government camp who give no thought to small island economies that make a big impact on the UK economy.
And yet some people are upset when Dominica takes on Argentina causes… We got Independent for a reason. The British government are wicked and not compassionate. Yet, some leaders will parade some monarch sometime this year in some of the Caribbean Islands. The British does allow none of its territories to stay in the UK longer than 180days, for some territories it is only 30 days like the BVI. To go to University they are subjected to the same scrutiny like any other foreign national. I am not talking about Independent nation, but territories.
Thank you Virgin Atlantic