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17-May-2016 20:49

This equates to a fee of up to £90 on a £3,000 family holiday, including flights and accommodation.

Tory MPs are privately putting pressure on Philip Hammond, the new Chancellor, to cut VAT in the autumn statement to provide a post-referendum shot-in-the arm to the economy.

Last night, they went public with calls for air passenger duty to be cut.‘It is the highest levy of its kind in Europe – by a long way – and the Treasury should be upfront about why it is prepared to see families in this country pay substantially more to take a well-earned break than their counterparts in places like France or Germany.‘Flight taxes of this kind – in the post-Brexit world – should be seen as an anomaly and the Government should follow the lead of the Scottish government and announce a major reduction sooner rather than later.’Mary Glindon, Labour MP for North Tyneside, is one of 21 MPs to sign a parliamentary motion calling for air passenger duty to be cut.

She has warned that many of her constituents will be tempted to fly from Scottish airports when the air tax is cut north of the border.

Air passenger duty is a lucrative source of income, raising more than £3 billion a year.

The Treasury will also collect £3.1billion from insurance premium tax this year and an estimated £5billion in 2020.

A Treasury spokesman said: ‘Air passenger duty has been frozen for most passengers since 2012.

This is typically far higher than would be charged by the customer’s own bank.

Ian Strafford-Taylor, chief executive of Fair FX, said: ‘Dynamic currency conversion is often nothing but a hyper-inflated rip-off, duping holidaymakers to pay unnecessary fees and accepting unfavourable exchange rates.

It covered the VAT charged at 20 per cent on holiday essentials such as sun cream and swimming costumes.

VAT had been 15 per cent before being jacked by Labour and then Tory ex-chancellor George Osborne.

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Alongside this, children under 16 are now exempt from paying APD and the cost of flying to many long-haul destinations has been cut.The retailer will then use its own exchange rate and fees when it converts the transaction from the local currency to sterling.

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