Campaigners point out that cutting Scottish air tax benefits rich households and corporations the most
Plans by the Scottish Government to reduce and then abolish Air Passenger Duty (APD) in Scotland are “predominantly a tax giveaway for Scotland’s wealthiest households and corporations”, according to a new report. The study by the Fellow Travellers campaign group against high carbon emitting air travel found 70% of Scotland’s richest households stand to benefit from the proposed cut, compared to 30% of the poorest. A Scottish air departure tax is set to come into force from April 2018 if passed by parliament, replacing APD. The SNP wants the tax cut by half by the end of this parliamentary term, with the charge to be scrapped when resources allow, claiming it will improve connectivity and create economic benefits. However, the Fellow Travellers report found that, based on official figures, halving the tax would lead to £189 million in lost revenue for Scotland by 2021/22. It says: “The SNP’s commitment has fired the starting gun for a race to the bottom on air passenger taxes in Great Britain. Any competitive advantage conferred on Scotland’s airports from a reduction in these taxes will be short-lived.” …. “This is predominantly a tax giveaway for Scotland’s wealthiest households and corporations.” APD currently brings in about £300 million per year. That could pay to employ 11,500 nurses. Or fund a year of childcare for 54,000 children. Or convert every bus in Edinburgh to being fully electric.
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The report is at Air Departure Tax report for Green MSPs.pdf
Plans to axe aviation tax ‘a giveaway to the wealthy’
About 70% of the country’s richest households will benefits from the Scottish Government’s plans, compared to 30% of the poorest, they claim.
Air departure tax is expected to come into force from April 2018, replacing air passenger duty.
Campaigners Fellow Travellers, who are are opposed to the plans, say businesses and wealthy leisure travellers who fly frequently will benefit the most.
They estimate that the average saving per journey will be £54 on a luxury jet, £20 in first class and £8 in economy.
Their report, which was published by the Scottish Greens, says halving the tax will lead to £189m in lost revenue for Scotland by 2021/22.
Co-author Leo Murray said he hoped the “woefully under-informed” policy would be reconsidered.
“The single biggest outcome of this change, if it is made, will be more wealthy Scots flying to London to spend their money there.”
A Scottish Government spokesman said it was committed to a “progressive, fairer tax system” and its air tax plans are a “fundamental component to improving Scotland’s international connectivity and providing a real boost to our economy”.
He added: “UK air passenger duty is the most expensive tax of its kind in Europe and one of the highest in the world and continues to act as a barrier to Scotland’s ability to secure new direct international services and maintain existing ones.”
https://stv.tv/news/politics/1391501-plans-to-axe-aviation-tax-a-giveaway-for-the-wealthy/
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Scottish Government’s air duty cut will ‘help the wealthy, not the poor’
SLASHING air passenger duty will hand nearly £50 million to big business –and cost the public purse hundreds of millions of pounds a year, a new report has claimed.
Control over Air Passenger Duty (APD) is being handed to Holyrood next year and MSPs will this week vote on a Scottish Government Bill to cut the levy in half by 2021.
Scotland’s airports estimate the plan could add one million extra passengers every year as airlines are promising a raft of new routes if APD is cut.
However, both the Greens and Labour are against the move on environmental grounds, and the fact the change would do little for the country’s poorest – given half of Scots have not taken a flight in the last year.
The study by the Fellow Travellers campaign group found 70% of Scotland’s wealthiest households stand to benefit from the plan, compared to 30% of the poorest.
Cutting APD by 50% will lead to £189 million in lost tax revenue for Scotland by 2021/22, the study also found.
Report co-author Leo Murray said: “Our analysis clearly shows cutting and then scrapping taxes on air travel will primarily reward corporations and Scotland’s richest households for choices that will set us back in the fight against climate change.
“At the same time it will damage domestic tourism and the rail sector.
“The single biggest outcome of this change, if it is made, will be more wealthy Scots flying to London to spend their money there.
“It is incumbent on the Scottish Government to urgently spell out exactly how this tax cut for the rich will be paid for – which public services do they intend to cut, or which other taxes will have to rise to make up the shortfall in the national budget?”
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The report found businesses would take 29% of the benefit, £47.3m the first year, while 8.3% (£13.5m) goes to leisure passengers in the richest 10% of Scottish households and 2.4% (£4m) to the poorest 10%.
Scottish Green MSP Andy Wightman, a member of Holyrood’s Economy Committee, added: “Given the social and environmental challenges we face, a cut in aviation tax was always a bizarre priority from the Scottish Government.
“Most Scots will lose out if this cut goes ahead, and it’s grossly misleading of ministers to try to sell this as about families when the overwhelming winners from this policy are wealthy frequent fliers and their businesses.
“This is nothing short of a bung to business, will deprive public services of vital funds and do nothing to reduce inequality or tackle the climate crisis.”
A Scottish Government spokesman said: “Our plan to cut Air Departure Tax by 50% by the end of the Parliament, and then abolish it when public finances permit, is a fundamental component to improving Scotland’s international connectivity and providing a real boost to our economy.
“UK APD is the most expensive tax of its kind in Europe and one of the highest in the world and is a barrier to Scotland’s ability to secure new direct international services and maintain existing ones.”
https://www.sundaypost.com/fp/scottish-governments-air-duty-cut-will-help-the-wealthy-not-the-poor/
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New report shows Scot Gov plan to cut aviation tax will damage Scotland and mainly benefit frequent fliers
A new report published by Scottish Green MSPs shows that the Scottish Government’s plan to cut aviation tax will cost the Scottish public purse hundreds of millions of pounds and put £47.3million into the pockets of businesses. It also shows wealthy frequent fliers stand to gain hugely more from the tax cut than regular travellers. This week the Scottish Greens will make a final attempt to amend the Air Departure Tax Bill at Holyrood so that instead of rewarding wealthy households and corporations and a highly-polluting industry, any new tax regime encourages a reduction in aviation and a shift towards cleaner forms of transport. The report finds that much of the benefit of the planned cut will accrue to those living in Scotland’s central belt; only 6% of all international flights by UK residents are taken by children, so the SNP’s claim that this policy will help “families” is highly misleading; such a generous tax subsidy for business flights within the UK will harm rail travel by incentivising a shift towards air travel; and reducing the cost of air travel will lower the cost of taking holidays outside of Scotland relative to holidays within Scotland, “cannibalising” holidaymakers from Scotland’s domestic tourism industry and worsening the deficit between what we spend abroad and what visitors spend here.
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Air tax plans to reward Scotland’s richest – report
By LAURA PATERSON
18.6.2017
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Plans to cut aviation tax in Scotland are “predominantly a tax giveaway for Scotland’s wealthiest households and corporations”, according to a new report.
The study by the Fellow Travellers campaign group against environmentally damaging air travel found 70 per cent of Scotland’s wealthiest households stand to benefit from the Scottish Government plans to cut and then abolish air tax, compared to 30 per cent of the poorest.
Air departure tax is set to come into force from April 2018 if passed by parliament, replacing air passenger duty.
The SNP administration wants to cut it in half by the end of this parliamentary term, with the charge to be scrapped when resources allow, claiming it will improve connectivity and create economic benefits.
The report found businesses would take 29 per cent of the benefit, £47.3 million the first year, while 8.3 per cent (£13.5 million) goes to leisure passengers in the richest 10 per cent of Scottish households and 2.4 per cent (£4 million) to the poorest 10 per cent.
Researchers estimate the average per journey saving for a passenger is £54 on a luxury jet, £20 in first class and £8 in economy.
Based on official figures, halving the tax will lead to £189 million in lost revenue for Scotland by 2021/22, the study found.
The report states: “The SNP’s commitment has fired the starting gun for a race to the bottom on air passenger taxes in Great Britain. Any competitive advantage conferred on Scotland’s airports from a reduction in these taxes will be short-lived.”
It continues: “This is predominantly a tax giveaway for Scotland’s wealthiest households and corporations.”
Report co-author Leo Murray said he hoped the “woefully under-informed” policy would be reconsidered.
He said: “Our analysis shows clearly that cutting and then scrapping taxes on air travel will primarily reward corporations and Scotland’s richest households for choices that will set us back in the fight against climate change, at the same time as damaging domestic tourism and the rail sector.
“The single biggest outcome of this change, if it is made, will be more wealthy Scots flying to London to spend their money there.”
The report was published by the Greens who plan a final attempt to amend the Bill in parliament next week.
The party’s Andy Wightman said: “Most Scots will lose out if this cut goes ahead, and it’s grossly misleading of ministers to try to sell this as about families when the overwhelming winners from this policy are wealthy frequent fliers and their businesses.
“SNP and Tory MSPs have combined to block changes to the Bill and it will be disappointing if they do so again at this week’s final vote. This is nothing short of a bung to business, will deprive public services of vital funds and do nothing to reduce inequality or tackle the climate crisis.”
A Scottish Government spokesman said it was committed to a “progressive, fairer tax system” and its air tax plans are a “fundamental component to improving Scotland’s international connectivity and providing a real boost to our economy”.
He added: “UK APD is the most expensive tax of its kind in Europe and one of the highest in the world and continues to act as a barrier to Scotland’s ability to secure new direct international services and maintain existing ones.”
http://www.scotsman.com/news/air-tax-plans-to-reward-scotland-s-richest-report-1-4479156
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