Cutting Air Departure Tax Would Only Help the Rich

June 19, 2017 Taxation in UK

air departure taxEDINBURGH – Scotland’s new air departure tax is not yet, but the government already has plans to abolish it, although the change will only help corporations and the wealthy.

New research recently released by the campaign group Fellow Traveller has shown that the plans to scrap the air departure tax in Scotland will likely provide a disproportionate benefit to the country’s richest taxpayers.

The air departure tax in Scotland is expected to be implemented in April 2018, as one of the first devolved taxes in the country.

However, the leading SNP administration already plans to slash the tax rate in half by the end of its current parliamentary term, with a further long-term plan of removing the tax entirely as soon as practical.

The party claims that removing the tax would improve Scotland’s connectivity in Europe.

However, in the new report, it was claimed that the benefit of scrapping the tax would primarily to businesses, who will see 29 percent of the tax savings.

Comparatively, only 2.4 percent of the benefit will go to taxpayers in the poorest 10 percent of households in Scotland, while 8.3 percent will go to taxpayers in the top 10 percent of households.

It was also shown in the report that the savings from cutting the tax will fall heavily in the hands of top-end travelers, with the savings from a luxury jet flight stacking up to GBP 54, while an economy flight would only be GBP 8.