Current status: Initiated by the Scottish Government. Answered by Kate Forbes on 23 April 2019
To ask the Scottish Government what progress has been made on the introduction of Air Departure Tax in Scotland.
In June 2018, the Cabinet Secretary for Finance, Economy and Fair Work announced that the introduction of Air Departure Tax (ADT) in Scotland would be deferred until the issues raised in relation to the Highlands and Islands exemption had been resolved. 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.
Since then the Scottish Government and UK Government have continued to work together to try to find a solution. The Scottish Government also established a Highlands and Islands Working Group last year to provide independent, expert input into the examination of the issue. The Group has made a valuable contribution to the evidence base by publishing new analysis that underlines the importance of the exemption to the region, and by providing external scrutiny of both evidence and process. However, a solution has not yet been found that would be ready for introduction at the beginning of the next financial year. This, taken together with the continued uncertainty around Brexit, means that that we have to defer the introduction ADT beyond April 2020.
The Scottish Government has a longstanding commitment to reduce ADT by 50%, and we are doing all we can to work with airlines and airports to help grow the direct routes which are important for our tourism sector and Scottish businesses. 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.