Air Departure Tax (Distributional Impact)

– in the Scottish Parliament at on 24 May 2017.

Alert me about debates like this

Photo of Ross Greer Ross Greer Green

7. To ask the Scottish Government what assessment it has made of the distributional impact on households of its proposed air departure tax reduction. (S5O-01025)

Photo of Derek Mackay Derek Mackay Scottish National Party

The Scottish Government fully supports and recognises the importance of robust analysis of its policies. That is why it has committed to undertaking and publishing a range of impact assessments of air departure tax. That includes an independent economic assessment, which will consider the best way to design a robust monitoring and evaluation framework, so that one can be put in place to assess, among other things, the socioeconomic impacts of ADT in the future. The economic assessment will be published in the autumn, no later than when the Government sets out its secondary legislation plans for ADT tax bands and tax rate amounts.

Photo of Ross Greer Ross Greer Green

The cabinet secretary will be delighted to know that the Scottish Greens have already done some of that work for him. Research that we commissioned shows that the richest 10 per cent of households stand to benefit four times as much as the poorest 10 per cent. Does he agree that that is not the action of a progressive Government?

Photo of Derek Mackay Derek Mackay Scottish National Party

We have been progressive as a Government in relation to currently devolved taxes such as land and buildings transaction tax and in how we have approached other taxes such as council tax. United Kingdom ADT is the highest tax of its kind in Europe and one of the highest in the world. We want to improve Scotland’s competitive position, connectivity and business growth, but of course all that will be part of the wider consideration. I will refer back to the assessments that we have commissioned.

Photo of Maree Todd Maree Todd Scottish National Party

What work is on-going on legislation to exempt the Highlands and Islands from ADT?

Photo of Derek Mackay Derek Mackay Scottish National Party

I was also asked about that in the Finance and Constitution Committee.

We are pursuing the position with the UK Government. Given that the UK is the member state, it is for the UK Government to approach the European Union through the notification process. We are working in partnership with the UK Government to try to ensure that we can continue the Highlands and Islands exemption, which is certainly this Government’s policy intention.