Travel tax welcomed

The recent passing by Holyrood of legislation establishing a new tax to replace air passenger duty in Scotland is to be welcomed.

The Bill to create air departure tax (ADT), which will now come into force from April 2018, paves the way for the Scottish Government to fulfil its commitment to cut the levy in half by the end of this Parliament, ahead of abolishing the charge altogether “when resources allow”.

UK Air Passenger Duty (APD) is the most expensive tax of its kind in Europe and profoundly impacts on Scotland, acting as a barrier to our ability to secure new direct international services and to maintain existing ones. Attracting investment is now more crucial than ever as we embark on Brexit negotiations.

The reduction and ultimate abolition of APD in Scotland will have two key impacts – first, some international routes which are currently marginal and therefore not flown are likely to become viable.

Secondly, there is likely to be a price reduction for the consumer on domestic flying and the real possibility of additional frequencies.

Research indicates that halving APD will create nearly 4000 jobs and add £200 million a year to the Scottish economy by 2020.

Without action, Scotland could lose out on nearly one million passengers every year, costing the Scottish economy up to £68 million in lost tourism revenue every year.

APD is a tax on Scotland’s ability to compete with the rest of Europe, and our economy is footing the bill in lost jobs and lost opportunities.

Addressing this will provide key advantages for both passengers and the Scottish economy. Alex Orr, By email.