Passing through Britain dodges duty tax

LONDON, May 14 (UPI) -- Passengers stopping over in Britain's international airports are costing the government $950 million a year in potential revenue, industry analysts said.

The potential loss comes from an air passenger duty that passengers do not pay unless staying in Britain or transferring to a domestic flight, The Times of London reported Wednesday.

Instead of netting the government $150, many of those traveling through spend a few dollars at a terminal lounge before departing, the report said.

The number of passengers just passing through has tripled in Britain since 1991 to 18 million per year, the report said. The number is expected to double by 2030.

The figures have provoked questions as to why the government would proceed with plans to demolish 700 homes to make room for a third runway at Heathrow, the report said.

Transportation Secretary Ruth Kelly said the international connections are vital to keep Britain open as "the main gateway to the global economy."