Passengers on business jets will be expected to pay Air Passenger Duty the chancellor of the exchequer, George Osborne, has confirmed.

However, owners have been given an additional year’s grace, with the introduction of the tax moved from April 2012 to 2013.

Addressing the British parliament, Osborne also stated a planned ten per cent rise in the level of taxation planned for April next year would also go ahead.

The increase is twice that of inflation.

Mike Carrivick, chief executive of the Board of Airline Representatives in the UK (BAR UK), attacked the decision saying it was at odds with a wider focus on infrastructure investment. 

“Air travellers are being milked yet again and used as a soft target to prop up Treasury coffers,” Carrivick said.

“This announcement is completely at odds with the Chancellor’s wish to invest in the transport infrastructure.

“No increase is justified; this action demonstrates the continued discrimination against air travellers.

A review of air passenger duty will be released early next month.

However, the Treasury has confirmed it will not affect the rise next April.

According to new Treasury forecasts, APD revenue will rise from £2.2 billion last year to £2.6 billion this year, rising annually until it hits £3.8 billion in 2016/2017.