MIAMI – As part of the British government’s 2022 budget, Chancellor Rishi Sunak announced a major shakeup to the tax paid by travelers older than 16 and traveling by air.

Passengers traveling on domestic economy class flights will enjoy a 50% tax cut, paying US$9 (£6.5) instead of US$18 (£13) per flight.

This change will make traveling within the country significantly cheaper because domestic return flights have taxed both ways, while international flights are only taxed on their departure leg.

However, the tax applied to ultra long haul destinations, located over 5,500 miles from the capital London, will increase from US$116 (£84) to US$126 (£91) according to the Daily Mail.

Popular travel destinations such as Australia, New Zealand, Japan, and Mexico will be affected.

An overhaul to the rates had been requested by UK airlines for several years. In 2020 the government promised to launch a review of the duty following Flybe’s collapse.

By cutting taxes for domestic travelers the government aims to boost connectivity within the country. While taxing longer haul journeys at a higher rate, aiming to align the tax with the government’s environmental objectives. 

The new rates will be implemented by April 1, 2023.


Featured image: LHR