Air Passenger Duty Research Paper Example | Topics and Well Written Essays - 4250 words

Air Passenger Duty - Research Paper Example It is expected that at the end of the paper, there shall be a definitive decision taken by the Welsh Minister on the way forward, as far as air passenger duty is concerned. 2 Background The air passenger duty could be said to be the brainchild of the Holtham Commission, which in 2010 came out with a recommendation to the Welsh Government on the need to make significant adjustments to its existing tax policies, especially those on minor taxes2. As part of the minor taxes to be considered was the air passenger duty. But since its imposition, the air passenger duty has come under intense public, academic and professional debate as to whether or not everything is being done right with the tax in terms of the allotment of duties and whether or not the air passenger duty should continue to exist at all. Currently, the air passenger duty is charged as a levy on a group of passengers tagged as chargeable passengers, using a group of aircraft tagged as chargeable aircraft from a United Kingdo m airport3. Even though the passenger may be the eventual payer of the levy, the duty is actually charged to the owner of the aircraft and thus the operator of the aircraft becomes payable to the Welsh Government. The Welsh Government does not therefore have any direct interactions with the passenger as far as the levies are concerned and it will be noted that even with the operator of the aircraft, the charge of the air passenger duty takes effect once the passenger aircraft first becomes airborne4. Currently, there are no fixed rates of duties or levies cutting across all chargeable aircrafts and for chargeable passengers. Rather, there are variations in the charges depending on the destination of the chargeable... It is worth mentioning however that the air passenger duty is currently non-devolved, meaning that not all countries within the United Kingdom are forcibly obliged to be implementers of the law. For example, it will be noted that in the Scotland and Wales, for example, the United Kingdom government is still undertaking a feasibility study to ascertain the likely effects that devolution would have on these countries; and thus the current study that is being undertaken. As part of the feasibility study and review that is taking place is the consideration on the constitutional and financial arrangements in Wales that would enhance or otherwise detract the successful implementation of the duty. It is therefore expected that by the close of the roles assigned to the commission in charge, known as the Silk Commission, there will be a clear statement on how financial accountability can be improved when the duty is brought into enforcement in Wales. Even more, the package of powers that give a constitutional right for the implementation of the duty shall adequately be considered to ensure that the provisions of the law do not conflict with any existing State legislation. It will be based on the findings that further action will be taken on the devolution of the air passenger duty. As pending is made of the final outcome of the commission’s work, it is important that discussions begin on how the air passenger duty will affect the larger Welsh economy and particularly the air transport industry.