Air passenger duty: environmentally necessary or cash-hoovering ruse?

To the government, air passenger duty is a necessary tax that helps offset aviation's contribution to the UK's carbon dioxide emissions. To the aviation industry, it is a cash-hoovering ruse, the proceeds of which far exceed the environmental cost of flying. The screw is also set to tighten for years to come. APD is expected to earn the Treasury £2.3bn this year, rising to £3.8bn by 2015 – an increase of 65%. The Treasury sidestepped the row today, saying it was introducing changes set by Gordon Brown's administration. "The coalition government is currently exploring changes to the aviation tax system and is committed to public consultation on any major changes that may be introduced," said a Treasury spokesman. British Airways boss Willie Walsh, speaking in Barbados this month , said the impact would be felt in developing regions such as the Caribbean. He said there had been a 12% drop in arrivals in the Caribbean from Britain since the APD charge for a family of four went from £120 to £200 last November. "This obsession with taxes on flying … will inflict considerable harm on airlines and their ability to do good for society," he said.