NEW RESEARCH: The taxman chases you all the way to the departure gate

August 22, 2014 12:58 PM

New research from the TaxPayers’ Alliance shows that punishingly high taxes on holiday items, insurance and flights have forced up the cost of a holiday abroad by £50 to every holidaymaker in Britain.

The TaxPayers’ Alliance has collated the cost of VAT on “holiday goods” such as sun tan lotion and a hair cut, the Insurance Premium Tax, and Air Passenger Duty – the highest tax on flying anywhere in the world. Due to increases in VAT and Air Passenger Duty,the overall figure has increased from our 2008 estimate of nearly £1.5 billion to nearly £1.9 billion this year.

At the extreme end, a family of four travelling to Florida this summer will have faced an average tax bill of £364 on their flights and holiday purchases in the UK, an increase of £164 since 2008. A family of six travelling to Spain will have been hit by an average tax bill of £195 just for going on holiday.

Click here to see the research note in full

Jonathan Isaby, Chief Executive of the TaxPayers’ Alliance, said:

“It’s wrong that a week in the sun comes with such a huge tax bill, as the taxman chases holidaymakers all the way to the departure gate. These taxes are not only too high but hit those on lower incomes the hardest, making it more difficult for hard-working people to get away for a well-deserved break.

“Too many of the taxes we pay are hidden. Who knew that there is a tax on travel insurance?

“These stealth taxes are unfair and must be abolished. It’s time for the Chancellor to give families a break.”

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