A bill to replace Air Passenger Duty in Scotland has been passed by the Scottish Parliament.

MSPs voted by 108 to 11 to replace APD, which is charged on all passenger flights from UK airports, with a new devolved Air Departure Tax from April 2018.

The Air Departure Tax Bill sets out the structure of the new tax and how it will be collected and managed by Revenue Scotland.

The Scottish government wants the tax cut by 50 per cent, before eventually scrapping it completely.

Supporters of the bill claim it will improve connectivity and create economic benefits, with opponents claiming it will cost the country £189 million a year in lost revenue.

Finance secretary Derek Mackay said: “The Scottish Government’s plans for ADT are a key part of our economic strategy for sustainable growth – in particular boosting trade, investment, influence and networks.

“Scotland is already an attractive destination for business and inbound tourism, but it is important, particularly given the economic threat posed by Brexit, that we continue to be open to key and emerging markets in order to further capitalise on the opportunities that exist,” said Mackay.

The Scottish Greens recently published research suggesting cutting APD was “predominantly a tax giveaway for Scotland’s wealthiest households and corporations” and warned the tax cut would lead to a “race to the bottom” on air passenger tax rates across the UK.

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