SNP accused of putting Aberdeen at 'competitive disadvantage' as air departure tax exemptions revealed
John Swinney’s government has been criticised for "using the powers of devolution to penalise rather than stimulate the North East economy”.
SNP ministers have been accused of putting Aberdeen “at a competitive disadvantage” after revealing airports in the Highlands and Islands will be exempt from a new aviation tax for incoming flights from other Scottish destinations.
Deputy First Minister Jenny Gilruth has confirmed that all flights between the Highlands and Islands and other Scottish airports will be exempt from Air Departure Tax (ADT) when the devolved levy finally comes into effect next year.
The Scottish government has had the power to introduce a devolved air passenger duty since 2016 but has only brought forward plans now, to be introduced from April 2027.
SNP ministers have now confirmed that incoming flights to the Highlands and Islands from other Scottish airports will be exempt from ADT.
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Under the plans, flights from the Highlands and Islands to the airports across the rest of the UK will be exempt, as is currently the case under the UK air passenger duty, including via connection flights.
But business leaders in Aberdeen have warned that the rules will put the North East at a commercial disadvantage, compared to nearby Highland airports such as Inverness Airport.
Russell Borthwick, chief executive of the Aberdeen and Grampian Chamber of Commerce, criticised the SNP government for "using the powers of devolution to penalise rather than stimulate the North East economy”.
He added: "It makes no sense to put Aberdeen at a competitive disadvantage versus other airports in the north of Scotland.
"Our city and region face many challenges, not least a government-inflicted crisis in oil and gas and the results of chronic underinvestment in infrastructure over decades. Businesses are crying out for support, not more barriers to growth.
"Rail services between the North East and the rest of the UK are nowhere near as fast and reliable as they could be and are often not a viable alternative for business travellers for whom time is money, or tourists wanting to make the most of their visit.”
Scottish Conservative finance spokesman, Craig Hoy, said: “The introduction of this latest SNP tax will pile on the costs for hard-pressed Scots families who are already forced to pay the highest taxes in the United Kingdom.
“While the exemption for those living in more rural and remote communities is welcome, passengers and airports in the rest of Scotland will want urgent clarification that these new charges will be kept in line with the rest of the UK.
“Otherwise, Scotland will quickly become a less attractive prospect for people to invest in, which will reduce the options available to families and have a deeply damaging impact on jobs and Scotland’s economy.”
Ms Gilruth has also confirmed the levy will pave the way for the introduction of a Scottish private jet tax from April 2028.
She said: “This is the latest step in our mission to ensure Scotland’s devolved tax system works for every corner of the country.
“These ADT exemptions recognise the particular connectivity challenges faced by the people and businesses who have made the Highlands and Islands their home, and will help support communities to thrive.
“A private jet tax will ensure those who contribute significantly higher emissions per person compared to commercial flights will pay more for the privilege.”
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