PUBLISHED: 09:04, Mon, Sep 7, 2020 | UPDATED: 09:04, Mon, Sep 7, 2020
Plane ticket costs could be set to drop if Chancellor Rishi Sunak makes the decision to temporarily suspend air passenger tax for airlines. With much of the cost of this tax being transferred to customers, it could see passengers seeing a sizeable reduction in the cost of some tickets.
The speculation comes following pressure from a reported 24 Tories calling for air passenger duty to be suspended until the end of summer 2021.
Air passenger duty is charged to airlines, who cover costs by passing it on to passengers in ticket prices.
The tax can see the cost of short-haul tickets rising by around £13.
Long-haul tickets can see a cost increase of around £78 with the addition of air passenger duty.
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Flights: Rishi Sunak is facing pressure to cut air passenger duty (Image: Getty Images)
Flights: Rishi Sunak is facing pressure from some Tories (Image: Getty Images)
If it is slashed, airlines may remove the amount from tickets in a bit to lure holidaymakers back to the skies.
Though nothing has been confirmed, the Treasury released an official statement on Sunday night suggesting that some amendments to the current tax regulations are likely.
"The Chancellor has announced that there will be a consultation on aviation tax reform," it reads.
"As part of this, the Government will consider the case for changing the air passenger duty (APD) treatment of domestic flights, such as reintroducing a return leg exemption, and for increasing the number of international distance bands."
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