Plans to scrap Air Passenger Duty welcomed by Highlands airport boss
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A consultation on plans to reform and reduce Air Passenger Duty (APD) in Scotland has been welcomed by the boss of the area’s airports network – who declared that the aviation tax "amplifies our remoteness".
The Scottish Government launched the 12-week consultation today and stated that powers to replace UK APD are due to be devolved to the Scottish Parliament under the Scotland Bill, implementing the recommendations of the Smith Commission.
Inglis Lyon, managing director of HIAL, which operates Inverness Airport, said: "Although APD does not apply to flights from the Highlands, it does apply to cross border services into Inverness. For that reason, HIAL has long supported proposals to devolve the tax to Scotland and we welcome this latest move by the Scottish Government.
"There is no doubt that APD, which is the highest aviation tax in Europe, has been a burden on our tourist industry and simply amplifies our remoteness.
"Reducing and ultimately removing this tax would send a message to airlines that Scotland and the Highlands are open for business."
The consultation, which closes on June 3, builds on the work of an APD stakeholder forum, which was set up last year by Deputy First Minister John Swinney and Scotland’s infrastructure secretary Keith Brown.
Views are being sought on how the reduction should be structured and how the tax should be operated to help boost Scotland’s international connectivity and economic competitiveness.
The Scottish Government has committed to reducing the overall burden of APD by 50 per cent, with the reduction beginning in April 2018 and delivered in full by the end of the next Scottish Parliament.
The tax will be abolished entirely when resources allow, according to the Scottish Government.
A strategic environmental assessment screening and scoping report has also been launched seeking views on the environmental issues that need to be considered.
Mr Swinney said: "UK APD is one of the most expensive taxes of its kind in the world. It continues to act as a barrier to Scotland’s ability to secure new direct international routes and maintain existing ones.
"Our plan to begin reducing the overall burden of a new tax in Scotland by 50 per cent from April 2018, implement that reduction in full by the end of the next Scottish Parliament, and then abolish it entirely when public finances allow, is a fundamental component of our efforts to improve Scotland’s international connectivity.
"Scotland is already an attractive destination for business and inbound tourism, and it is important that we continue to open Scotland up to key and emerging markets in order to further capitalise on the opportunities that exist.
"We want to be consultative and collaborative as we have been with the new fiscal levers already devolved to Scotland. This policy consultation allows us to take the next step and begin the process of developing a new approach that helps deliver our objective of sustainable economic growth.
"It is also a further example of the Scottish Government moving ahead with pace and purpose to ensure we are ready to use Scotland’s new additional powers as soon as possible after they have been devolved."
Liz Cameron, director/chief executive of the Scottish Chambers of Commerce, said: "We have been asking for the abolition of this tax for some time – it is a tax on connectivity and a barrier to international trade. The government has committed to reducing APD by 50 per cent by 2021.
"However, let’s consider the feasibility of implementing this reduction earlier. This would really boost tourism and our exporting competitiveness.
"We would urge as many businesses and individuals as possible to take part in this consultation calling for the government to reduce it as a priority supporting the creation of even more jobs."
