British Legislator Backs Region Stand on APD Tax

A British legislator has voiced support for the position of the Caribbean over London’s decision to increase a controversial Air Passenger Duty (APD) tax even as the region said it would continue to advocate for the removal of the measure.

I understand the UK government’s position. I recognize that with the deficit we have to raise revenues as do many other countries and taxation is a key part of that. But, having said that, the APD as it currently stands is not a level playing field and it should be reviewed in a way that alters it, said Mark Pritchard, who is visiting Barbados for a firsthand view of the effect the APD is having on the local industry.

Also, with the potential to increase in November there is a short window of opportunity with those that share my view to remind the Treasury of their own admittance of the impact of the APD on the Caribbean, he told reporters.

The British MP for The Wrekin said it is important to do all we can to get the UK government to recognize that whilst revenues do need to be increased, whilst we need to do as much as we can for the environment, there needs to be a holistic approach to the impact of APD on the Caribbean.

He added that this is a commitment now made by someone who has now visited this part of the world and understands the plight even more in depth.

Tourism Minister Richard Sealy told reporters that the manner with which the Caribbean has been treated in terms of the APD tax is unfair and we will ardently continue to push for a fair system.

Regional countries have argued that as a result of the APD, a family of four flying from the United Kingdom to the Caribbean now has to pay close to £400 (US$625.08) in taxes. In 2005, such a family would have paid a total of £80 (US$125.06) in taxes.

In February, the Caribbean Tourism Organization released statistics from 23 countries that showed the region experienced a decline of arrivals from the United Kingdom for a third consecutive year with officials attributing the drop to a weak British economy and increases in the APD.

The lobbying has helped in delaying some of the increases and also our voice is heard in many different areas of influence. We are aware that we will not get the APD abolished and we understand the need for taxation, but we want a fair way for it to be applied, Sealy said.

It is important that we continue to keep the fight. If the APD does increase again in November this will be a challenge for the Barbados tourism industry, Sealy added.