More clarity is needed on plans to devolve Air Passenger Duty (APD) to the Scottish Parliament, says the Chartered Institute of Taxation (CIOT)

It pointed out that a UK Government plan to cut aviation taxes to boost Union connectivity runs contrary to the Scottish Government’s plans for the tax.

The CIOT was responding to a Treasury consultation on the future of aviation tax that has proposed reducing the amount of APD paid on domestic flights.

The Scottish Government had previously supported a similar approach to the tax, but reversed this position in 2019, arguing it was incompatible with its climate objectives.

In contrast, Scottish Ministers have now pledged to look at the possibility of increasing the tax once it has been devolved to Holyrood and replaced by Air Departure Tax.

The institute has called for clarification from the UK and Scottish governments on how they plan to resolve the issues that have prevented APD from being devolved to the Scottish Parliament, despite it being legislated for in 2017.

Neither have set out in any detail how they plan to resolve this impasse, leaving the timing of the tax’s devolution uncertain.

In its written submission to the UK Treasury consultation on aviation tax reform, the CIOT has also expressed concern that the proposal to cut APD on domestic flights is inconsistent with the UK government’s plans to achieve net zero by 2050.