John Key Concerned Over APD

November 27, 2008 International Taxation  No comments

Prime Minister John Key is showing more concern about the proposed Air Passenger Duty (APD) rise.

Prime Minister John Key has voiced his concerns in regards to the proposed tax raised levied on out bound flights from the UK. He specifically mentioned the prospect of other European countries emulating this scheme as a one of the largest concerns for him. As New Zealand will still be in an equally taxed distance from most European countries if similar schemes were implemented.

In a Radio New Zealand interview, John Key said that he personally told British Prime Minister Gordon Brown that the proposed APD system was not necessarily rational. His argument cruxes on the fact that not every flight is equal in regards to their output of carbon, he raised specific examples such as Air New Zealand which is at this time trialing low carbon bio-fuels.

Similarly, Ian Godden, chief executive of Society of British Aerospace Companies has said that taxing the distance of a flight as opposed to older, more polluting planes is not the path for the British government to reach its own environmental objectives.