Air passenger duty to be replaced under new bill

Air passenger duty in Scotland will be replaced by an air departure tax, under a Scottish Government bill now introduced to the Holyrood Parliament.

The bill would further the Scottish Government's aim to reduce the overall burden of air passenger tax initially by 50% from April 2018, and to abolish it entirely "when finances allow". It follows the further devolution of powers in the Scotland Act 2016.

Revenue Scotland will be the authority responsible for the collection and management of the tax.

Ministers believe the new name better reflects the general scope of the tax, which is charged on passengers departing by air from Scottish airports, and also ensures that there is no confusion with air passenger duty, which will continue to operate in the rest of the UK after 1 April 2018.

Finance Secretary Derek Mackay said: “This bill is a key milestone in making sure Scotland remains an attractive destination for business and tourists alike."

The environmental impacts of reducing the tax are being considered through a strategic environmental assessment.

Click here to access the bill and related papers.