John Cullinane

The UK government has proposed reducing the amount of APD paid on domestic flights to boost connectivity within the United Kingdom, but the Scottish Government has opposed a cut in APD since 2019 on climate grounds.

In its 11-page response to a Treasury consultation, the CIOT called for clarification from the UK and Scottish governments on how they plan to resolve the issues that have prevented APD from being devolved following legislation in 2017.

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.

It has made a number of suggestions to the UK government for ensuring that the tax better aligns with wider climate targets.

John Cullinane, CIOT director of public policy, said: “We need clarity from the UK and Scottish governments about how they plan to resolve the issues that have prevented air passenger duty from being devolved to the Scottish Parliament.

“This is particularly important because it comes at a time when the UK government is actively considering cutting the tax to boost domestic connectivity and the Scottish Government is proposing the opposite.

“Greater clarity will help to give those who will be responsible for collecting and administering the tax more time to prepare for its introduction and give taxpayers confidence in the commitment of both governments to see devolution of the tax through to its completion.

“Otherwise, we run the risk of being left with continued uncertainty, which is unhelpful to the overall performance and credibility of the devolved taxes.”