Air passenger duty replacement legislation introduced

Ministers say the tax will eventually be abolished entirely.

Published 20th Dec 2016

Legislation to bring in a Scottish replacement for air passenger duty (APD) has been introduced at Holyrood.

The Air Departure Tax (Scotland) Bill will allow the Scottish Government to progress its plans to cut the duty by 50% from April 2018.

Scottish ministers have said the tax, charged on passengers flying from Scottish airports, will eventually be abolished entirely when finances allow.

The Scottish Government has said the environmental impact of the policy was being carefully considered'' following criticism from opposition parties and environmental groups.

Finance Secretary Derek Mackay said: This bill is a key milestone in making sure Scotland remains an attractive destination for business and tourists alike.

By reducing the burden of air departure tax by 50%, and then entirely when finances allow, we have the potential to open up new air routes, improve our international connectivity and help Scotland access key and emerging markets while giving due consideration to environmental issues.

While setting out our overall ambitions for this important new tax, we want to take this opportunity to hear the views of the Parliament and of stakeholders on the detail.

In the light of the economic uncertainty caused by the outcome of the EU referendum, it is even more important that we use the powers devolved to us under the Scotland Act to look at how we can boost our economy.''

Gordon Dewar, chief executive of Edinburgh Airport, said: This is the beginning of a process that will bring economic growth and create jobs in Scotland.

We welcome the commitment from the Scottish Government and the support from the Scottish Conservatives in reducing air passenger duty.

We hope that other parties will back a move that will boost jobs and revenue in Scotland.''