Move will help us grow, says finance secretary
Airport bosses have welcomed the Scottish Government’s decision to replace air passenger duty in Scotland.
Glasgow Airport said air passenger duty (APD) was a “regressive tax” which prevented economic growth.
APD is charged on all passenger flights from UK airports.
It varies depending on where the passenger is going and the class of travel.
Setting APD has recently been devolved to Scotland, and the SNP government wants to cut it by 50 per cent, before scrapping it completely.
It argues the move will boost the economy by increasing the number of flights to and from the country.
But critics are concerned about the environmental impact of more flights, and claim a cut would mainly benefit wealthy travellers and big business.
A Glasgow Airport spokesman said: “We welcome the result of the vote on the Air Departure Tax (Scotland) Bill.
“We have long supported the Scottish Government’s commitment to reduce and ultimately abolish this regressive tax which acts as a barrier to growth.
“Not only is Air Passenger Duty one of the highest forms of aviation tax in the world, it seriously undermines our connectivity with both domestic and international markets.
“Now more than ever it is important we send a message to airlines that Scotland remains open for business, and with the proposed 50 per cent reduction in APD we have a very real opportunity to do so.
“Not only will it play a major role in cultivating confidence amongst airlines, particularly post- Brexit, it would deliver an immediate boost to our competitiveness.”
The Conservatives and Labour voted with the SNP on approving the Bill, with the Green Party and Lib Dems voting against.
Finance secretary Derek Mackay said: “The Scottish Government’s plans for ADT are a key part of our economic strategy for sustainable growth – in particular boosting trade, investment, influence and networks.
“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 continue to be open to key and emerging markets in order to further capitalise on the opportunities that exist.
“Our airports are competing on a world stage to secure new routes and capacity.
“Reducing the tax burden helps ensure a more level playing field with many other 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 this government continuing to move ahead with pace and purpose in order to ensure we are ready to begin using Scotland’s new powers once they are devolved to the Scottish Parliament.”
Details on new tax bands and tax rate amounts will be set out in the autumn.