PAXboy
26th Feb 2007, 18:08
Reported on Yahoo Monday 26th February. http://uk.news.yahoo.com/26022007/325/tour-operators-challenge-airline-tax.htmlon
LONDON (Reuters) - A tax on air passengers was attacked by tour operators on Monday who said they planned a legal challenge which could force the government to repay holidaymakers and airlines more than 2 billion pounds. The Federation of Tour Operators (FTO) said it would challenge the legality of Air Passenger Duty (APD), adding if its high court bid is successful the British government would be forced to scrap the tax.
SNIP
"Charges are only permitted if they are cost-based in relation to the provision of a service, such as use of airports or air navigation services," the FTO said in a statement. "APD is not levied for any such service and is simply a tax which raises revenue for general government spending ... As a result APD is in contravention of Article 15 of the Chicago Convention, has been illegal under EC law at least since 2004 and should be withdrawn with immediate effect."
Unlike airlines, tour operators, in most cases cannot pass the rise on to holiday makers who booked their trip before February.
rest of article via link (above)
The lawyers must be very pleased about this one as it will run for ages and go nowhere. It is grand to see the tax challenged but their chances of winning must be slight. Perhaps they just see it as a publicity thing.
LONDON (Reuters) - A tax on air passengers was attacked by tour operators on Monday who said they planned a legal challenge which could force the government to repay holidaymakers and airlines more than 2 billion pounds. The Federation of Tour Operators (FTO) said it would challenge the legality of Air Passenger Duty (APD), adding if its high court bid is successful the British government would be forced to scrap the tax.
SNIP
"Charges are only permitted if they are cost-based in relation to the provision of a service, such as use of airports or air navigation services," the FTO said in a statement. "APD is not levied for any such service and is simply a tax which raises revenue for general government spending ... As a result APD is in contravention of Article 15 of the Chicago Convention, has been illegal under EC law at least since 2004 and should be withdrawn with immediate effect."
Unlike airlines, tour operators, in most cases cannot pass the rise on to holiday makers who booked their trip before February.
rest of article via link (above)
The lawyers must be very pleased about this one as it will run for ages and go nowhere. It is grand to see the tax challenged but their chances of winning must be slight. Perhaps they just see it as a publicity thing.