Leading UK tour operators today began a legal challenge to the British government's Air Passenger Duty (APD) airport departure tax.
If successful, the judicial review could mean the complete withdrawal of APD, which Chancellor Gordon Brown doubled at the beginning of this month.
A successful outcome of the legal action by the Federation of Tour Operators (FTO) could leave the British government open to claims by airlines and their customers for the repayment of more than £2 billion that has been collected since 2004.
The decision to double APD from February 1st means passengers now have to pay £10 for economy class fights to Europe, £20 for business and first class flights to Europe and £40 for economy and £80 for business and first class long-haul flights.
The FTO is arguing that as a signatory to the 1944 Chicago Convention on International Civil Aviation, incorporated into EU law in 2004, the UK government is not entitled to impose dues or charges on aircraft solely for the right of transit over, or exit/entry from or into the UK from a fellow state.
The FTO said charges were only permitted if they were cost-based in relation to the provision of a service, such as use of airports or air navigation services.
It added that APD was not levied for any such service and was simply a tax that raised revenue for general government spending.
The FTO argued that as a result APD was in contravention of Article 15 of the Chicago Convention, has been illegal under EU law at least since 2004 and should be withdrawn with immediate effect.
PA