UK, Scottish governments at odds over air departure tax

HM Treasury has denied that devolution of the UK’s air passenger duty was flawed, after the Scottish government said that moving forward with plans to replicate an existing exemption for travel from Scottish Highlands and Islands under the new air departure tax could put those regional economies at risk if the exemption is found to violate EU state aid rules.

“It is disappointing that the Scottish government has been unable to design a tax which is compliant with EU law,” a Treasury spokesperson said in an emailed statement October 5. “It is wrong for them to try and pass the blame for their unwillingness to take responsibility for their own tax.” Read more:

My news story for Tax Analysts, October 6 (paywall)