TREASURY WARNED OVER AIR TAX CHANGES

TREASURY WARNED OVER AIR TAX CHANGES

BUDGET SHAKE-UP WOULD BE HIGHLAND’S HAMMER BLOW

DANNY ALEXANDER REMINDED OF PREVIOUS OPPOSITION TO PLAN

Speaking ahead of tomorrow’s Budget, Western Isles SNP MP Angus
MacNeil has called for assurances that the Highlands and Islands will
not lose existing air tax concessions as a result of Treasury plans to
replace Air Passenger Duty (APD) with a “per plane” tax.

Under current tax rules, passengers departing from Highlands and
Islands airports, and those flying on any service operated by aircraft
with less than 20 seats or 10 tonnes maximum take-off weight are
exempt from APD.

Mr MacNeil has written to both the Chancellor and Chief Secretary to
the Treasury warning that, without appropriate exemptions, a “per
plane” tax could threaten air services for passengers in the Highlands
and Islands.

Mr MacNeil also reminded the Treasury Secretary, Danny Alexander, a
fellow Highlands MP, of comments he made in 2007 about previous plans
to replace APD with a “per plane” tax. Speaking in October 2007, Mr
Alexander said: "The possible removal of this exemption would be a
serious blow to the Highland economy. It would be a reversal of the
government's recognition that these Highlands and islands services are
lifeline services and on that basis merit a different treatment."

Mr MacNeil said:

“To lose this exemption would be a hammer blow to the Highlands and
Islands economy, and the Treasury must ensure that equivalent air tax
concessions are continued.

“Scottish air services would be disproportionately affected by this
change, and it would undoubtedly result in a reduction in the
frequency lifeline flights as airlines maximise seat occupancy. This
change may also apply to cargo flights, and that would clearly also
raise questions over the frequency of flights transporting essential
provisions and mail deliveries to our remote communities

“Danny Alexander, as a fellow Highlands MP, clearly understands the
situation, and I am encouraged that he has spoken out against this
threat previously. Now that he is in the Treasury he must ensure that
the current exemptions are not withdrawn, and that future air links to
and from the Highlands and Islands are not threatened.”