The Isle of Man Government should take immediate action to ensure that travellers to and from the Isle of Man do not lose out on the UK Government’s tax cut for flights between England, Scotland, Wales and Northern Ireland according to the Manx TaxPayers’ Alliance.
“If no action is taken, travellers to and from the Isle of Man will be forced to continue paying double the aircraft passenger duty applied to domestic flights within the four nations of the United Kingdom. In light of the tax rises on hospitality businesses earlier this month, the people of the Isle of Man can ill afford new tax disadvantages,” said Michael Josem of the Manx TaxPayers’ Alliance.
In this week’s United Kingdom’s Autumn Budget and Spending Review 2021 by UK Chancellor Rishi Sunak, the UK Government announced that it would be “introducing a package of Air Passenger Duty (APD) reforms that will bolster UK air connectivity through a 50% cut in domestic APD”. These reforms appear to exclude the Isle of Man, and thus, the Isle of Man Government needs to take action for the benefit of the people of Mann.
“This week’s UK spending review and budget will boost airports like Belfast, Inverness and Cornwall Newquay. Ronaldsway should not be left out, and the Isle of Man Government should take quick action for the benefit of our community,” said Josem.
Air Passenger Duty
Let me turn now to Air Passenger Duty. Right now, people pay more for return flights within and between the four nations of the United Kingdom than they do when flying home from abroad. We used to have a return-leg exemption for domestic flights but were required to remove it in 2001. But today I can announce that flights between airports in England, Scotland, Wales and Northern Ireland will from April 2023, be subject to a new lower rate of Air Passenger Duty.
This will help cut the cost of living, with 9 million passengers seeing their duty cut by half. It will bring people together across the UK. And because they tend to have a greater proportion of domestic passengers it is a boost to regional airports like Aberdeen, Belfast, Inverness and Southampton.Autumn Budget and Spending Review 2021 Speech
UK Government Announcement
An extract from the Autumn Budget and Spending Review 2021
A better-connected United Kingdom
2.183 The government is introducing a package of Air Passenger Duty (APD) reforms that will bolster UK air connectivity through a 50% cut in domestic APD, and further align with UK environmental objectives by adding a new ultra-long-haul distance band.
2.184 Following consultation, the government will introduce a new domestic band for APD set at £6.50. The rate will apply to all flights between airports in England, Scotland, Wales and Northern Ireland (excluding private jets). As a result, around 9 million passengers will pay less APD in 2023-24. This will benefit connectivity between Great Britain and Northern Ireland.
2.185 In addition, the government is increasing the number of international distance bands from two to three, with the new distance bands set at 0-2,000 miles; 2,000-5,500 miles and 5,500 miles plus. The rates will be £13; £87 and £91 respectively for economy passengers. This will align APD more closely with environmental objectives by ensuring that those who fly furthest incur the greatest level of duty.
2.186 A summary of consultation responses received from stakeholders has been published alongside the Budget and SR.