First class passengers will suffer from tax increase in the budget

It has been announced that airline passengers traveling in premium and first class will be hit by a tax hike. Chancellor Jeremy Hunt has announced a "one-off adjustment" to air passenger duty (APD) for those with non-economy class tickets, such as Premium Economy, Business Class, and First Class.

In his budget speech, Mr. Hunt said the measure would "explain the high inflation in recent years." Currently, the cost of premium class tickets for passengers departing from UK airports ranges from £13 to £200 depending on the distance of the flight. This information was published by independent.co.

Clive Wratten, chief executive of the Business Travel Association, said: "The increase in the duty on non-economy class air passengers is catastrophic for the economic well-being and welfare of British businesses and their employees. Contrary to popular misconception, business travel is not just for the rich. This tax will hinder the growth of small and medium-sized enterprises by limiting opportunities for international cooperation. It will hit charities, academics, and researchers, as well as companies of all sizes that are struggling with rising costs in all areas."

He also added that there is no mechanism to ensure that the funds from this tax will be used for innovation in the airline sector or for environmentally friendly aviation fuel. Therefore, it is another tax on British business.

The PA news agency asked the Treasury to provide details of this increase.

Elsewhere in the Budget, the Chancellor confirmed that the 5p per litre cut introduced in March 2022 will be maintained for another 12 months and that fuel duty will not be increased in line with inflation.

According to Mr. Hunt, this will save the average driver £50 next year, and "the total savings since the 5p discount was introduced will be around £250."

When the fuel duty cut was first announced, it was expected to save drivers £100 a year. A Treasury spokesman said the reduction was due to falling fuel prices.

Government data show that the average cost of a liter of gasoline and diesel fuel in the UK is approximately £1.45 and £1.55, respectively.

In July 2022, prices reached record highs of £1.92 for petrol and £1.99 for diesel, mainly due to Russia's invasion of Ukraine, which led to higher oil prices.

Earlier, TravelWise wrote that passengers at London Heathrow Airport can expect a reduction in the cost of services by up to 6%.