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Government introduces further air passenger taxes

The UK government has received a stinging rebuke from the airline industry as we approach 1 November, the day when the UK government introduces yet more passenger taxes. Under the new regime a family of four travelling to Kenya, Thailand or South Africa would be forced to pay an additional £200 on top of the price of their tickets due to the increased taxation.

Various changes to the taxation of airline passengers will lead to a significant improvement in the £2 billion which it currently raises for the UK coffers with expectations of a rise to £2.5 billion this year and £3.5 billion by 2012. On top of the 1 November tax rises there will be further increases in November 2010 with the airline industry set to become a major target of the "Green Brigade" which seems to use the industry as an easy touch for extra taxation.

Even though the industry as a whole is up in arms about the soon to be introduced taxes changes there is nothing they can do about it in the short to medium term and indeed longer term prospects are not good. To tax an industry which is literally on its knees seems like commercial suicide and could lead to further financial issues for many airlines operating within the UK.

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