Framework Established to Replace Air Passenger Duty

22 Jun 2017

A bill to replace Air Passenger Duty in Scotland and introduce a new air departure tax (ADT) that will reduce the tax burden has been passed by the Scottish Parliament.

 

The Air Departure Tax (Scotland) Bill sets the structure of the new tax and how it will be collected and managed by Revenue Scotland.

 

MSPs voted to create a legal framework for the new tax at Holyrood on 20 June. The SNP Government will cut it by 50%.

 

Detail on tax bands and tax rates will be set out in secondary legislation in the autumn as part of the budget process, alongside other devolved taxes.

 

Kenneth Gibson said:

 

"SNP Government plans for ADT are a key part of our economic strategy for sustainable growth, boosting trade, investment, influence and networks.

 

"It is shocking that the UK has the highest passenger duty in the world, making many routes from Scotland uncompetitive and forcing Scots to suffer the time and expense of having to fly to many destinations from Gatwick, Heathrow or Manchester.

 

“Scotland is already an attractive destination for business and inbound tourism but it is important, particularly given the economic threat posed by Brexit, that we remain open to key and emerging markets.

 

“Our airports are competing on a world stage to secure new routes and capacity. Reducing ADT helps ensure a more level playing field with European airports competing to secure the same airlines and similar routes. New routes will enhance business connectivity and tourism as well as providing new jobs.

 

“The establishment of ADT is another important milestone on the journey to enhance Scotland’s fiscal powers, and another example of the SNP Government moving ahead with pace and purpose."

 

ENDS

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