Scottish government has launched two consultations on an overall 50% reduction policy plan for air departure tax (ADT), which will be introduced from April 2018, with the other assessing the environmental impacts from this reduction
The Scottish government wants to achieve a 50% ADT reduction in the overall tax burden by the end of the current session of the Scottish Parliament and potentially abolishing the tax when resources allow however, it has not been decided how this will be achieved.
Scottish government has not outlined how the reduction will be distributed across tax bands (eg, short-haul and long-haul flights) and tax rates and the profile of the reduction to ADT.
Tax bands and tax rate amounts are not set out in the Air Departure Tax (Scotland) Bill, and will instead be set out in secondary legislation in the autumn. The tax will be collected by Revenue Scotland.
The Scottish government believes that a 50% reduction will ‘boost Scotland‘s air connectivity and economic competitiveness, encouraging the establishment of new routes which would enhance business connectivity and inbound tourism and help generate sustainable growth’.
The government is currently undertaking a Strategic Environmental Assessment (SEA) in relation to the overall 50% ADT reduction policy, in compliance with the requirements of the Environmental Assessment (Scotland) Act 2005, which requires that a SEA be carried out where a policy plan is likely to have a significant environmental impact.
ADT, a tax payable by aircraft operators and charged on the carriage of chargeable passengers on chargeable aircraft from airports in Scotland, is expected to come into effect from 1 April 2018, replacing UK Air Passenger Duty.
UK Air Passenger Rates from 1 April 2018 are as follows:
Bands (distance in miles from London) | Reduced rate (lowest class of travel) | Standard rate (1) (other than the lowest class of travel) | Higher rate (2) |
Band A (0-2000 miles) | £13 | £26 | £78 |
Band B (over 2000 miles) | £78 | £156 | £468 |
(1) If any class of travel provides a seat pitch in excess of 1.016 metres (40 inches) the standard rate is the minimum rate that applies.
(2) The higher rate applies to flights aboard aircraft of 20 tonnes and above with fewer than 19 seats.
The Air Departure Tax (Scotland) Bill was approved by Scottish parliament on 20 June.
The deadline for responses is 15 Sep 2017.
Air Departure Tax – Consultations on an overall 50% reduction policy plan and an Environmental Report is available here.
