Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Business think-tank backs ministers call for APD cut

Think-tank says Scottish air routes are disadvantaged
Think-tank says Scottish air routes are disadvantaged

Air passenger duty (APD) and VAT are putting Scotland’s vital tourism industry at a competitive disadvantage, according to N-56.

The business think-tank, named after Scotland’s latitude and founded by millionaire property developer Dan Macdonald, said the two taxes were holding the country back from becoming one of the wealthiest in the world.

APD has few friends in the north and north-east, where business leaders have fought hard to have it reduced or even scrapped.

Tourism Minister Fergus Ewing said yesterday a 50% cut in APD in an independent Scotland would help to attract new air links and cut the cost of visiting the country.

Economist Graeme Blackett, lead author of N-56’s Scotland Means Business reports, said: “We welcome the call by the Scottish Government for a reduction in air passenger duty and would also welcome a reduction in VAT as both these measures have a major impact on the tourism sector.

“These two taxes are putting the Scottish tourism sector worth £1.2billion in exports and supporting 185,900 jobs at a competitive disadvantage, when compared with competitor economies.

“Many other EU countries have reduced the rate of VAT on visitor accommodation, attractions and restaurant meals; the UK being only one of four EU countries that applies the full VAT rate.”

He added: “APD also puts Scottish tourism at a price disadvantage, given that most international tourists arriving in Scotland travel via London airports.

“Scotland is, therefore, at a particular disadvantage since APD is paid on international flights into and out of London and on flights between London and Scottish airports.

By contrast, in Northern Ireland APD has been devolved to the Assembly and is rated at zero on direct long-haul flights.

“Any proposals by the Scottish or UK governments to reduce the rate of air passenger duty as it impacts on Scotland are, therefore, to be welcomed.”