The RSE has responded to the Scottish Government’s consultation on Air Departure Tax (ADT).
The Society has outlined reservations over whether a reduction in the overall burden of ADT by 50% would play a significant role in achieving the Government’s goals of strengthening the Scottish economy and improving connectivity in Scotland.
The current Air Passenger Duty (APD) has proved to be an efficient tax in raising revenue for government. The RSE argues that careful consideration should be given to any decision to decrease such a consistent source of revenue, especially during a period when it is universally accepted that public finances are strained, and are likely to be so for the foreseeable future.
In addition, the RSE believes that the suggestion that reducing ADT by 50% would lead to a boost in tourism, job creation and increased productivity in Scotland, is not well established. While it does seem likely that an ADT reduction would result in a small increase in tourism to Scotland, there are significant doubts that the suggested reform would achieve the outcomes the Scottish Government seeks for the economy.
The full response can be accessed here.