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<p>The UK’s aviation sector largely operates in a competitive private market. Government’s
role is primarily to develop and implement the regulatory and policy frameworks that
have helped to shape this world-leading sector. Last year we published Flightpath
to the Future to set out how we will work with the sector to help it grow and return
to pre-pandemic levels of demand and profitability.</p><p>The Government recognises
how our extensive airport network can act as a catalyst for national and local benefits.
In April, we introduced a 50% cut in domestic Air Passenger Duty (APD) to help bolster
domestic connectivity, while further aligning APD with UK environmental objectives
by adding a new ultra-long-haul distance band.</p><p>Although there are no plans to
introduce a scheme for Duty-free on arrival stores, the Government does keep all taxes
under review. On 1 January 2021, the Government did extend duty-free sales to EU-bound
passengers for the first time in over 20 years. This is a significant boost to all
airports and international rail terminals in England, Scotland and Wales, including
smaller regional airports and rail hubs, which have not been able to offer duty-free
to the EU before.</p>
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