Date lodged: 16 May 2019
To ask the Scottish Government, in light of the First Minister’s declaration of a climate emergency, what its response is to the UK Government reducing corporation tax for the airline industry from 28% to 17%.
Answered by: Kate Forbes 28 May 2019
The Scottish Government believes in fair taxation policy for all individuals and businesses. Responsibility over corporation tax is reserved to Westminster. The Scottish Government therefore has no power to legislate in this area but we urge the UK Government to include consideration of environmental impacts, as part of its tax policy-making.
Following updated advice from the UK Committee on Climate Change on 2 May, the Scottish Government acted immediately by lodging amendments to our Climate Change Bill to set a net-zero emissions target for 2045 and increase the targets for 2030 and 2040. The Scottish Government is now reviewing a range of policies, across our whole range of responsibilities, to ensure that we do all we can to support the public sector, businesses, communities and individuals to meet our shared climate responsibilities. We have taken the difficult decision that reducing Air Departure Tax is no longer compatible with more ambitious climate targets.