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Scotland Legislates To Replace UK Air Passenger Duty

by Jason Gorringe, Tax-News.com, London

27 December 2016


Scotland has introduced The Air Departure Tax (Scotland) Bill into Parliament to install its own air passenger tax in place of the UK's Air Passenger Duty (APD) from April 2018.

Scotland intends to charge the levy on passengers by air from Scottish airports and reduce the tax burden by a half over the period from April 2018 to the end of the parliamentary term. The Scottish Government said the tax will then be abolished entirely when finances allow.

Being introduced as part of the tax devolution settlement with the United Kingdom, the Bill sets out that Revenue Scotland will be the authority responsible for the collection and management of the tax, after the existing APD regime no longer applies in Scotland.

"This Bill is a key milestone in making sure Scotland remains an attractive destination for business and tourists alike," said Finance Secretary Derek Mackay. "By reducing the burden of Air Departure Tax by 50 percent, 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."

TAGS: environment | Finance | tax | business | United Kingdom | legislation | Tax | Scotland

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