The Bill sets the structure of the tax and how it will be collected and managed by Revenue Scotland.

Detail on tax bands and tax rate amounts will be set out in secondary legislation in the autumn when parliament returns after the summer recess, as part of the Scottish government’s budget process and alongside other devolved taxes.

The new tax is part of Scotland’s plan to devolve certain taxes away from Whitehall.

A key difference between the UK Air Passenger Duty and that of Scotland’s is that the rates are expected to be lower than those applied under UK tax rules.

The Scottish tax will be collected quarterly, rather than monthly. It will also be built around an online collection and management system.

The registration process will begin in February 2018 for those operators likely to be affected.

Scottish finance secretary Derek Mackay stated at the bill’s introduction: ‘This bill is a key milestone in making sure Scotland remains an attractive destination for business and tourists alike.

‘By reducing the burden of Air Departure Tax by 50% 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.’

CIOT has warned that the lack of detail around tax rates is an ‘opportunity missed’ to provide clarity.

Moira Kelly, chair of the CIOT’s Scottish Technical Committee: ‘By failing to include the detail of who will pay what in primary legislation and by deferring this detail until later in the year, the Scottish government has missed an opportunity to provide those impacted by the tax – passengers, airlines and airports – with advanced notice of what they will pay in the future and how this compares with the outgoing regime it has been designed to replace.’

Report by Kevin Reed