Scotland: Air passenger duty changes stuck in holding pattern
The Scottish govt seems to have put its new air departure tax into a holding pattern - and these plans may be up in the air for a while. It's blaming a legal technicality - and foot-dragging by ministers at Westminster. The new tax has to be approved by the EC, it says. Tough EU rules which ban state aid make it potentially problematic for flights to and from the Highlands and Islands being exempted from the tax. Throw in Brexit - and it all gets very awkward. But the Finance secretary Derek MacKay may have other pressing reasons - practical and political - for parking this tax plan. The govt has always argued that cutting air passenger duty will boost connectivity and strengthen the economy. But expert groups have asked - where's the evidence for that? They say it's lacking. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-10-06/general/scotland-air-passenger-duty-changes-stuck-in-holding-pattern
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Scotland: Air passenger duty changes stuck in holding pattern
The Scottish govt seems to have put its new air departure tax into a holding pattern - and these plans may be up in the air for a while. It's blaming a legal technicality - and foot-dragging by ministers at Westminster. The new tax has to be approved by the EC, it says. Tough EU rules which ban state aid make it potentially problematic for flights to and from the Highlands and Islands being exempted from the tax. Throw in Brexit - and it all gets very awkward. But the Finance secretary Derek MacKay may have other pressing reasons - practical and political - for parking this tax plan. The govt has always argued that cutting air passenger duty will boost connectivity and strengthen the economy. But expert groups have asked - where's the evidence for that? They say it's lacking. <br/>