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What is APD? And why is it controversial?

What is APD? And why is it controversial?

APD was introduced in 1994 at a flat rate of £5 for flights to UK/EU destinations and £10 elsewhere but has increased significantly since then.

 

The band A reduced rate has risen to £13 and band B to £78, while the band A standard rate has gone up to £26 and band B to £156 (rising to £172 from April 1, 2019).


Band B non-EU exemptions include Russia (west of the Urals) and Ukraine, as well as Morocco, Libya, Algeria, Tunisia and Turkey.


From March 2016, children under 16 have not been chargeable passengers.


APD has been widely criticised, and blamed for the loss of some air routes.


IAG chairman Willie Walsh said APD had put the buffers on regional long-haul routes, handing an advantage to other EU nations.


Both Norwegian and Ryanair have axed Scottish routes, citing the Scottish government’s failure to deliver on a promise to half APD.

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