There has been mixed reaction to Wednesday's announcement by
UK Chancellor of the Exchequer George Osborne that the planned increase in the Air Passenger Duty (APD) scheduled to take effect in November has been delayed until 2012.
Lindsay Ingram, the General Manager of Newmont Travel Agency, which has a large booking for the Caribbean in the UK, says while the freezing of the APD is positive, it is not enough.
Mr. Ingram says he does not believe the tax will ever be scrapped as is being called for by lobby groups, parliamentarians in the UK and regional governments.
Mr. Ingram told RJR News’ London correspondent that the unfairness of the manner in which the APD is effected, is now a focus.
The freeze was announced as a result of a sustained campaign by Caribbean governments, UK organizations and Members of Parliament, who have been pressuring the British government to scrap the tax.
Discriminatory tax
And Allen Chastenet, the Minister of Tourism and Aviation in Saint Lucia, agrees with Mr. Ingram that delaying the planned increase in he APD is not enough to correct what he labelled a discriminatory tax.
He says the region will be looking at taking the issue to the World Trade Organisation (WTO).
"We have a tremendous amount of Caribbean people living in the UK and we have a lot to be grateful to the UK for but at the same time, we have to protect out industry. This tax is a discriminatory tax, it is different levels of taxation to different parts of the world and as such, is against the rules of the WTO and if after the budget speech (in Britain) we’re not satisfied that this is being addressed, there will be islands or countries that will challenge the UK government at the WTO level," Mr. Chastenet said.
Continuing the dialogue
Meanwhile, Anthony Johnson, Jamaica’s High Commissioner to the UK, says he hopes the delay in the tax rise will help to keep Jamaica’s tourism sector buoyant.
Mr. Johnson stressed that it is now important to continue the dialogue and move towards a permanent solution that is equitable and will make travel to Jamaica and the Caribbean a more affordable experience.
The APD was first introduced in 1994, and has been increased on a regular basis, with rates as high as £170 per passenger.
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