- 26th April 2019
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
Scottish government announces further delay to Air Departure Tax plans
The Scottish government has further delayed its plans to replace Air Passenger Duty (APD) with its own Air Departure Tax (ADT).
It has confirmed that the ADT plans have been delayed until ‘at least’ 2020.
In 2016, as part of the Scotland Act, the Scottish Parliament was given devolved powers to charge tax on travellers leaving Scottish airports. Proposals were put forward to replace the UK-wide APD with an ADT, which would be set at half the current rate.
The ADT was set to take effect in April 2018, but the plans experienced problems with EU state aid rules, which give an exemption to airports in the Highlands and Islands.
Commenting on the delay, Kate Forbes MSP, Minister for Public Finance and Digital Economy, said: ‘The Scottish government has been clear that it cannot take on ADT until a solution to these issues has been found, because to do so would compromise the devolved powers and risk damage to the Highlands and Islands economy.
‘While we work towards a resolution to the Highlands and Islands exemption, we continue to call on the UK government to reduce APD rates to support connectivity and economic growth in Scotland and across the UK.’