As with all taxes, the Government keeps Air Passenger Duty (APD) under review and any changes are announced by the Chancellor at fiscal events. APD applies to airlines and is the principal tax on the aviation sector since tickets are VAT free and aviation fuel incurs no duty. It is expected to raise £3.8 billion in 2023-24 and the primary objective of the tax is to ensure that airlines make a fair contribution to the public finances. From April 2023, the Government has reduced the rate of APD on domestic flights in order to support UK-wide connectivity. The new domestic rate applies to all flights between airports in England, Scotland, Wales and Northern Ireland (excluding private jets) and is set at £6.50 for economy passengers, benefitting more than 10 million passengers in 2023-24.