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SPAA slams APD reduction delay

Tax
Edward Robertson
10 October 2017

The Scottish Passenger Agents’ Association (SPAA) has described a hold up in the reduction of Air Passenger Duty (APD) as “confusing and disappointing”.

Highlights: Scotland's themed year

The Scottish government had hoped to replace the tax with a new devolved Air Departure Tax (ADT) in the country from April next year which they hoped would be half the current rate before ultimately being abolished.

However, the BBC has reported it said that to continue exempting journeys from airports in the Highlands and Islands required EU approval under state aid rules.

Gaining the approval could take longer than Brexit, leaving the Scottish government with a bill of £320 million to maintain the exemption in the meantime.

Opposition parties have said MSP finance secretary Derek Mackay is preparing to U-turn over cutting the tax, a charge that he has denied.