8 Business View Caribbean - January 2015
Opening
Lines
CHTA Celebrates
Abolition of UK
Air Passenger
Duty for Kids
The Caribbean Hotel & Tourism Association is celebrat-
ing the abolition of the Air Passenger Duty for children
12 years of age and under starting in May, which was
announced by British Chancellor George Osborne. Ad-
ditionally, Chancellor Osborne promised to eliminate
the APD for children 16 years of age and under start-
ing May 1, 2016.
“We welcome (the) announcement by Chancellor Os-
borne about the elimination of the Air Passenger Duty
on children as this alleviates costs for family vacations
and essentially cuts the taxes in half for a family of two
adults and two children,” said Jeffrey S. Vasser, direc-
tor general and CEO of CHTA. “The timing of the aboli-
tion of the tax will further benefit families as vacations
in the Caribbean are reduced for summertime travel.”
The announcement adds to the good news Chancellor
Osborne released in 2014 with regard to reforming the
current four-band system for the APD to a two-band
system starting April 1, 2015. Under the new two-band
system, all long-haul flights (more than 4,000 miles)
will be moved into band B, which means UK customers
traveling to the Caribbean will pay the same tax as if
they were traveling to the United States.
According to the budget: From April 1, 2015, the tax on
long-haul flights between 4,001 and 6,000 miles will
be reduced by £14 per person, while those over 6,000
miles will be cut by £26. With the announcement, a
family of four (two adults, two children) could save over
£140 starting May 2015.
