Why are London airport taxes so high?

The UK has some of the highest aviation taxes in the world Aviation was the only form of transport that did not pay tax on fuel. APD was designed to change this but as international aviation agreements generally prevented a tax on jet fuel, APD was the method chosen by the government to bring in a new tax.



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Heathrow has argued it needs higher fees to provide a good service, pay its shareholders returns and fund investment such as new security scanners which mean liquids can stay in bags and a modern baggage system for one of its terminals.

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The reason comes down to business operating costs including rent, commission, and other fees. Therefore, businesses must charge more for their products, including food, in order to generate profit. So, airports themselves are in part responsible for high food prices.

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The Community of Madrid is known for having one of the lowest tax burdens for low incomes in Spain. The regional Personal Income Tax (IRPF) rates are relatively lower, resulting in lower tax payments for individuals with lower incomes.

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