Scottish parliament passes new air departure tax

Reducing tax on air travel will help to ensure a more level playing field for Scottish airports, enhancing business connectivity and providing new jobs, Scotland’s finance secretary said as a bill to replace air passenger duty with a new air departure tax (ADT) from April 2018 was passed by the Scottish parliament.

Derek Mackay, cabinet secretary for finance and the constitution, said an independent economic assessment of plans to reduce ADT by 50 percent will be published this autumn, no later than secondary legislation setting out proposed ADT tax rates and bands. He confirmed plans to abolish ADT “when resources allow”.

A lack of detailed consultation about rates and bands risks reduced scrutiny, said Moira Kelly, chair of the Chartered Institute of Taxation’s Scottish Technical Committee. Read more:

My news story for Tax Analysts, June 22 (paywall)