JAMAICA DIASPORA
CONFERENCE
AIR PASSENGER DUTY
DIASPORA RESPONSE
BY HIGH COMMISSIONER
HER EXCELLENCY
ALOUN NDOMBET-ASSAMBA
Introduction
• The Air Passenger Duty (APD) is an excise duty or tax that was introduced
by the Government of the United Kingdom in 1994. Then it was intended
to be a "green" tax to tackle the issues of pollution caused by flying.
• It was originally £5 for short haul flights and £10 for long haul however,
over the past few years the tax has risen by 360%. In 2011/12, the British
government collected £2.2 billion from air passenger duty alone.
•
The APD four band system is discriminatory and particularly harmful to
small developing Commonwealth nations. The system unduly favours the
United States and short haul destinations in Europe.
• As taxes on air travel and tourism are extra-territorial in effect, their
impact on development should be fully considered. Tourism is the largest
contributor to economic growth in the Caribbean and many other
Commonwealth nations. In the case of the Caribbean, travel and tourism
contributed on average 14.7 per cent of all GDP in 2011 but in nations that
are tourism dependent this figure rises to as much as 74.2% of GDP
(Antigua and Barbuda).
• The main inequality of the banding system is that when we
are travelling to Jamaica which is four thousand seven
hundred miles (4,700 miles) we pay more duty than those
travelling to Hawaii some seven thousand (7,000 miles) away.
This is simply because the bands are calculated on how far the
capital of each destination is from London.
• Another flaw of APD is that people who are travelling on
premium economy are required to pay the same rates as
those paying for a first class fare, despite the significant
difference of ticket prices.
•
The tax is inequitable and disproportionate in its scope and
level to air passenger taxes levied by other nations.
• The UK Government has been presented with solutions that
are revenue neutral and have significant support but has
chosen to ignore these.
• The Caribbean is the most tourism dependent region in the
world. At a time when the Caribbean is experiencing low
GDP growth, high levels of debt and rising food and energy
prices, a changed approach to APD could provide a boost to
the Caribbean economy in a way that is both valuable and
effective.
• All tourism dependent nations in the Commonwealth,
including the United Kingdom, would benefit from the
restructuring of APD.
• Specialist travel agents that deal with travel by
Commonwealth Diasporas report reduced frequency of
travel by minority groups. APD is causing the revision of air
routes. In the case of the Caribbean, British Airways (BA)
has reduced flights due to rises in APD and reassigned them
to the United States.
Bands
Reduced rate
(approximate
(lowest class of travel)
distance in miles
from the UK)
Standard rate
(other than the
lowest
class of travel)
Higher rate
(applies
to aircraft of 20
tonnes and
above with
fewer than 19
seats)
From
1 April
2012
From From From From From From
1 April 1 April 1 April 1 April 1 April 1 April
2013
2014
2012
2013
2014
2013
From
1 April
2014
£13
£13
£13
£26
£26
£26
£52
£52
Band B
£65
(2001 – 4000 miles)
£67
£69
£130
£134
£138
£268
£276
Band C
£81
(4001 – 6000 miles)
£83
£85
£162
£166
£170
£332
£340
Band D
(over 6000 miles)
£94
£97
£184
£188
£194
£376
£388
Band A
(0 – 2000 miles)
£92
DIASPORA RESPONSE
• For several years now, Caribbean Governments and the
Caribbean Diaspora in the UK have been working through
the Caribbean High Commissioners to lobby the British
government to lower the charge for Caribbean flights.
We believe that we are being unfairly treated by the APD.
• The Diaspora is to be urged to use its political clout. A
letter writing campaign , in key Constituencies where the
Caribbean vote is critical, is to be intensified.
• The Chair of the Executive Committee of the
Commonwealth Parliamentary Association, Sir Alan
Haselhurst MP has written his support of our lobby.
• Since this year , the campaign to re-band the
Caribbean has moved into a new phase.
• A Caribbean High level APD Committee that I
chair has been established.
• Jamaica National Building Society (JNBS) has
donated seed funding of 20 thousand pounds
(£20,000).
• This Fund must be matched and the campaign
needs some 50 thousand pounds (£50, 000).
• Caribbean Governments need to come
together to create better and wider awareness
of the APD
• The High Level Committee has written to
stakeholders in the Travel and Tourism Sectors
seeking financial support for the campaign.
• Other stakeholders are to be approached to
financially support to lobby . The previous
campaign did not get very far due to a lack of
funding
• The APD Coordinating Committee chaired by
Mr Gilmour Smith has been reactivated. This
committee has representatives from all
affected countries and stakeholders.
• The Coordinating Committee is developing a
range of strategies aimed at raising funds and
increasing awareness of the negative impact
of the APD.
• Support and endorsement of the lobby is to
be sought from high profile Caribbean
personalities and celebrities i.e. international
athletes and the visiting West Indies Cricket
team.
• The Churches are to be approached to get on
board and spread the word.
• Re-band the Caribbean from band C to band B
• We need your help
CONCLUSION
• The APD is here to stay. It brings in significant
revenue for the British Government which has
projected that the duty will raise £3.2 billion from
receipts in 2015 and £3.8 billion in 2017.
• However this does not mean that we should not
continue to fight for a more equitable system.
• We must continue to lobby for the Caribbean as
an area of unique and special interest.
• Lord Bill Morris led a group of five Labour MPs
to meet with Cathy Jamieson, the Labour
Party’s front bench Shadow Economic
Secretary, on 14 May to discuss APD and the
Caribbean. Cathy Jamieson is sympathetic to
the Caribbean position.
• All political parties are beginning to develop
their thinking about issues for the next
general election due in May 2015 with a view
as to what will be included in their party
manifestoes.
• This means that the next six to nine months
will be critical to lobbying on APD and the
Caribbean, and more generally to ascertain
whether the political parties will maintain
aviation travel taxes in the form of APD after
the next election or seek some alternative tax
or source of revenue to replace it.
• Use your vote to make a difference