'Scrapping APD will boost UK economy' - report | Buying Business ...

Abolishing Air Passenger Duty could create around 60,000 new jobs and help the UK economy begin growing again, according to a new report.

The study by accountancy firm Pricewaterhouse Coopers, which was commissioned by four of the UK?s major airlines, found that scrapping the aviation tax could boost the UK?s gross domestic product (GDP) by 0.46 per cent in the first year and also add to growth for every year up to 2020.

PWC claimed that the UK economy would be boosted by at least ?16 billion in the first three years without APD which would ?result in almost 60,000 extra jobs in the UK over the longer term?.

The report also said that the abolition of APD would ?pay for itself? because the boost in the economy would create higher income tax and VAT payments for the Treasury.

PWC said that the net benefit of the end of APD would be almost ?500 million in the first year even without the revenue from APD, which is forecast to bring in ?2.9 billion this year.

The study was commissioned by four of the UK?s biggest airlines ? British Airways? owner IAG, Easyjet, Ryanair and Virgin Atlantic.

The four airlines said in a joint statement: ?The PWC report highlights the critical role that aviation plays as an engine of economic growth for both international commerce and tourism.

?It proves that APD is one of the three most destructive taxes; alongside corporation tax and fuel duty.

?The chancellor has taken action on those two taxes in the Autumn Statement and we would encourage him to use the forthcoming budget to remove APD to stimulate economic growth and create jobs.

?Should APD be abolished, the aviation industry would be able to move quickly to add new flights in and out of the UK, or invest in new products and services, creating new opportunities for businesses and much needed jobs across the UK.?

The Treasury has dismissed the findings of the PWC report and said that it did "not recognise the figures in this report or agree with the assumptions behind it".

APD is due to rise again from April 2013 which follows an 8 per cent rise implemented in the 2012/3 tax year. For full details of APD rates, click here.

To read more about the PWC report, click here

?

Source: http://buyingbusinesstravel.com/news/0420310-scrapping-apd-will-boost-uk-economy-report

veep los angeles kings earth day