Air tax cut is cautiously backed

A Holyrood committee has backed plans to cut air tax but expressed “disappointment” at the lack of information provided by the Scottish Government about the impact of the move.

All but one member of the Finance Committee endorsed the general principles of the proposal in a parliamentary report but said the absence of supporting evidence “has the potential to undermine scrutiny” of the policy.

MSPs have called on ministers to provide evidence of the economic, social, environmental and financial impact of cutting the newly-devolved tax by 50% by the end of the current Parliament before eventually abolishing it.

The reduction in the levy will begin when a Scottish replacement to air passenger duty (APD) is introduced in April 2018 through the Air Departure Tax (ADT) Bill.

The committee said MSPs must be provided with further supporting information before being asked to set the tax rates and bands for the levy.

MSPs have also urged finance secretary Derek Mackay to commission an independent economic impact analysis of reducing the tax.

Committee convener Bruce Crawford said: “The Finance Committee recognises that the Air Departure Tax Bill is an enabling Bill. Nevertheless, we are disappointed by the Government’s lack of information on exemptions to the tax and on the economic, social, financial and environmental impacts.”