All the countries that are mentioned as having lower rates of APD also have higher rates of income tax and as an electorate we need to decide whether we prefer direct or indirect forms of taxation. Ever since Margaret Thatcher was elected in 1979, politicians have realised that what the UK electorate tends to vote for is low direct taxation policies with the result that this is what they have all tended to focus on since then but the consequence of having amongst the lowest rates of income and other direct taxes in Europe is that we also have amongst the highest rates of indirect taxation such as APD, VAT and excise duties.

Personally I would prefer the position to reversed, that is, that we pay taxes on the basis of our income not on what we spend our income on but I wonder how many people would vote for the party that is bold enough to say we will abolish APD and halve VAT but we will put 5p in the £ on your income tax to make up the shortfall instead?

SM

I would be more than happy to receive a reasonable income and pay income tax on that , then top that up with allowances ( not taxed ) that pay for my living costs , with a generous allowance that can cover things like travel and food and sky TV and window cleaning etc etc and my workplace would have a heavily subsided restaurant and bar too , I wonder how many people would vote for that ? Who would get a lifestyle like that ?

It's all a very debatable issue , if someone earns an income working full time earning minimum wage , should they pay more tax so APD and VAT can be cut ?

I would prefer to pay as little direct tax as possible on my average income , so what I earn I keep , if I spend it on things I choose that are indirectly taxed that it my choice , if I decide to buy a nice seat on a flight I will pay more tax than a seat nearer the back , I don't want to pay more , but see the logic of why it costs more .
The only problem with indirect taxation is that it's sneaked in here and there and I think APD was introduced to offset environmental costs ( but does it ? ) the idea of VAT seems logical but is the scope of this tax fair ? Also NI costs are increased rather than basic tax which affect income , but is the " tax " collected used efficiently ?

Governments find it easier to increase indirect taxes and get very little hassle or can explain it away easier than directly taxing you because you would notice straightaway that your income has decreased , and that will never be popular !!

The example they give of APD for a family of four going to Florids of £278 is pretty steep though isnt it? After all children dont pay income tax.

andy66 wrote:

It's all a very debatable issue , if someone earns an income working full time earning minimum wage , should they pay more tax so APD and VAT can be cut ?

That's why I would prefer a graduated, progressive system of income tax that took the lowest paid below the taxpaying threshold. The consequence of a larger and larger portion of the tax take coming from indirect rather than direct income-based taxes is that the lowest paid already end up paying a higher % of their income in tax than those who are better off because things like VAT are now levied on things that we have no option other than to buy but I guess this is taking us off topic.

Fiona, I guess I see it as simply part of the cost of going to Florida, you have to weigh up whether you can afford it or not on the basis of the total cost? Surely it doesn't matter how the cost is made up? Is APD a make or break factor when families with children are deciding whether they can afford to go on a long haul holiday?

SM

I can't answer that one Will see what families say.

But if they cut it to say £76 , that would save you £200 , but being a bit cynical here would the total fare be reduced by £200 ? Or would the airline sneak in a little increase ?

I think these increases in APD need to be justifiable , they just increase too regular by too bigger %ages
For instance next year it will probably be just slapped up by £10 , no thought or reasoning which will mean a higher %age increase than inflation or income , if these increases were just 1 or 2 % it would be more justifiable , at the moment it's just lazy policy hoping no one will notice , or just moan a bit and then forget .
I understand your point of children not paying income tax , so should children be exempt from APD ? And up to what age ? And who's going to pay more to make up the shortfall ?

SMa , your post made during mine .

I agree with your point completely , and it's all about fairness , but somehow the politicians always talk about " a fairer society " but never in the way most people see it !!

Those with the knowledge and time can save a lot on flights by flying via places such as Amsterdam rather than direct. This however is a far easier option for couples or solo travellers than for families, whose main concern is obviously to get to their destination as quickly as possible.