Tax hikes in wake of 9/11

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Tax hikes in wake of 9/11

Australian air travellers are paying 60 per cent more in airport taxes and government charges in the aftermath of the terrorist strikes on the US.

Research conducted for Flight Centre's corporate division has found that the average Australian air traveller paid $51.87 in taxes and charges in the three months before September last year and $81.40 in the following three month period. Flight Centre's corporate division national sales and marketing manager, Scott Goddard, said the introduction of a range of new charges, including the Ansett and security levies, had contributed to the increase.

"These taxes and charges are collected by Flight Centre Limited for other bodies and the company does not benefit from them in any way," Mr Goddard said.

"We have argued against them and feel that they should be reduced and, in some cases, eliminated.

"The $10 Ansett levy is a good example. The Federal Government took steps to encourage Australians to travel after September 11 by offering a $150 rebate. But at the same time, air travellers were hit with a new bill to help pay for Ansett employees' entitlements.

"Ansett employees should certainly get their entitlements, but I question whether the money should have been raised through a new tax imposed directly on air travel at a time when most of the world's airlines were struggling to fill planes."

Mr Goddard said increased taxes and charges were a concern for business travellers in particular.

"A leisure traveller taking his or her annual holiday might not notice an extra $30 in taxes and charges, but many of our business travellers find themselves in planes several times each month out of necessity.

"For these people, any increases in taxes and charges will create a significant additional cost as they go about their normal business."

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