Delegated Powers and Law Reform Committee

Meeting date: Tuesday, May 16, 2017

Official Report 329KB pdf

Air Departure Tax (Scotland) Bill: Stage 1

Item 5 is consideration of the Scottish Government’s response to the committee’s recommendations at stage 1 of the Air Departure Tax (Scotland) Bill.

Members will recall that the committee recommended that the Scottish Government should lodge amendments to the bill at stage 2 in two areas. First, the committee recommended that the Scottish Government should lodge amendments that make detailed provision for exemptions from the definitions of “chargeable passenger” and “chargeable aircraft”, as that would afford Parliament the best opportunity for full and effective scrutiny of a significant aspect of the bill’s policy.

Secondly, the committee recommended that the Scottish Government should consider lodging an appropriate amendment at stage 2 to more closely align the power in section 10(2) with its stated policy intention of enabling the Scottish ministers to make provision relating to the core structure of the air departure tax, as provided for in section 9, which does not relate to tax bands or tax rate amounts.

The Scottish Government has responded to the Finance and Constitution Committee and, in so doing, it has responded to this committee’s recommendations. The Scottish Government has advised that it will lodge amendments at stage 2 that provide for passenger and aircraft exemptions. The response further notes that the Scottish Government is exploring issues concerning the introduction of an air departure tax exemption for passengers who fly from Highlands and Islands airports.

However, the Scottish Government has advised that section 10(2) as drafted, when it is read in context with sections 10(1) and 10(3), is consistent with the policy intention of providing a secondary legislation power to make provision relating to the structure of the tax beyond defining tax bands and setting tax rate amounts. Therefore, the Scottish Government does not plan to lodge an amendment at stage 2 to that provision.

Accordingly, does the committee agree to welcome the Scottish Government’s intention to lodge amendments that make detailed provision for exemptions from the definitions of “chargeable passenger” and “chargeable aircraft”?

Members indicated agreement.

Does the committee agree to note the Scottish Government’s position on section 10(2)?

Members indicated agreement.