TREASURY Minister Eddie Teare MHK says he has no intention of extending Air Passenger Duty (APD) to aircraft with 19 seats departing the Isle of Man.
The assurance follows confirmation that the United Kingdom is extending APD to business jets, which will result in passengers travelling aboard 19-seat aircraft from the UK to the Isle of Man paying APD of approximately £13, effective from 1 April, 2013.
However, Minister Teare says he has no plans to impose the duty on passengers boarding 19-seat aircraft departing the Island on scheduled commercial routes to the UK.
Mr Teare said: ‘Air passengers aboard 19-seat aircraft could potentially have been faced with paying an additional £13 on both legs of their journeys between the UK and Isle of Man. However, we have taken the decision not to introduce this duty on the Isle of Man to UK leg of flights. Whilst I will continue to raise the matter with my UK counterparts, the extension of APD to passengers aboard 19-seat planes on travel from the UK to the Island is ultimately a matter for the UK Government. In the context of the Island, I believe that maintaining the status quo and not introducing it is the preferable solution, as a number of routes operated from the Isle of Man are served by aircraft that fall into this category.’
Treasury is in discussion with the Department of Economic Development to determine whether extending APD to other business jets would have an impact on economic opportunities and the growth of the Isle of Man Aircraft Registry.
He added: ‘In relation to extending APD to other classes of business jet, I am seeking the views of the Department of Economic Development, and through them of businesses, before making a final decision on whether to introduce the UK’s other APD changes.’