ICAS response to Scottish Government consultation on Air Passenger Duty

Passengers at airport

ICAS has responded to the consultation by the Scottish Government on a Scottish replacement to Air Passenger Duty

3 June 2016

Read ICAS' response

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Key points

  • It is not clear that a Scottish replacement to Air Passenger Duty will achieve the objectives of the Scottish Government to create a more cohesive and resilient economy that improves the opportunities, life chances and wellbeing of every citizen of Scotland.  ICAS has examined the consequences across a wide range of stakeholders to illustrate the impact of changes across the Scottish economy.
  • The devolution of Air Passenger Duty and a differential in rates across the UK increases the likelihood of  tax competition.  This may lead to “no detriment” debates if competition in one part of the UK is detrimental to another part.
  • The Scottish Government has indicated that its policy to reduce Air Passenger Duty by 50% will be partly funded by additional tax receipts generated from increased trade and business in Scotland.  ICAS has noted that the current devolution settlement has the effect that not all additional tax revenue will be retained by the Scottish Government


  • Consultations and responses
  • Tax

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