ICAS Response: HM Treasury discussion paper air passenger duty devolution
ICAS has responded to the call for evidence by the Treasury on options for supporting English regional airports from the impacts of air passenger duty devolution.
Read ICAS' response
The response is limited to the administration of taxation arrangements and the possibility of tax competition across the UK as a result of any changes in Scotland, Wales, Northern Ireland or England. The response notes that APD for long haul flights was devolved to the Northern Ireland Assembly in Finance Act 2012. There is anecdotal evidence that the abolition of air passenger duty on these flights has had an impact in retaining transatlantic flights from Belfast.
ICAS has commented on the three proposals outlined:
- Partial devolution of APD within England
- Vary the rates of APD within England
- Provide aid to regional airports within England
Each option raises wider questions – constitutional issues, funding issues and compliance with European legislation – and careful consideration is required before changes are made.