The Caribbean Hotel & Tourism Association (CHTA) is celebrating the abolition of the Air Passenger Duty (APD) for children 12 years of age and under starting in May 2015 as recently announced by British Chancellor George Osborne. Additionally, Osborne promised to eliminate the APD for children 16 years of age and under starting May 1, 2016.
"We welcome today's announcement by Osborne about the elimination of the Air Passenger Duty on children as this alleviates costs for family vacations and essentially cuts the taxes in half for a family of two adults and two children," said Jeffrey S. Vasser, CHA, director general and CEO of CHTA, in a written release. "The timing of the abolition of the tax will further benefit families as vacations in the Caribbean are reduced for summertime travel."
The announcement adds to the good news Osborne released earlier this year with regards to reforming the current four-band system for the APD to a two-band system starting April 1, 2015. Under the new two-band system all long-haul flights (more than 4,000 miles) will be moved into band B, which means UK customers traveling to the Caribbean will pay the same tax as if they were traveling to the United States.
According to the budget, from April 1, 2015, the tax on long-haul flights between 4,001 and 6,000 miles will be reduced by about $22 while those over 6,000 miles will be cut by about $40. With the recent announcement, a family of four (two adults, two children) could save more than $220 starting May 2015.