Air passenger duty challenged in court

The Federation of Tour Operators (FTO) is suing the Government over the air passenger duty. And no, they are not restricting their objection to the latest controversial increase by Uncle Gordon. They are challenging the entire basis for air passenger duty. 

Their argument is that European Community law does not allow the Government to levy air passenger duty in the form in which it is levied in this country. The law in question is the 1944 Chicago Convention on International Civil Aviation, which has been incorporated into European Community law. That law allows for States to levy charges for services related to air travel. The FTO contend that UK law imposes air passenger duty merely for transit over, or in and out of the UK, and not for any services. They submit therefore that it is illegal.

They also challenge the levy on human rights grounds, claiming that it deprives them of legitimate income.

The Fisherman is not so sure that the second argument will succeed, but is interested in what the courts will make of the first argument. If it succeeds, the implication would be that air passenger duty should never have been charged in the first place. Air passenger duty was introduced by the Finance Act 1994, almost 17 years ago. That is a great amount of tax plus interest Uncle Gordon would have to refund if the courts rule in the FTO's favour. I would love to be proved wrong, but something tells me the courts may not see things the FTO's way.