Scottish ministers are moving forward with plans to introduce a tax on private jet travel, a move that critics argue could make Scotland less attractive to investors. The proposed levy is slated to be announced later this year as part of the annual budget process, with the tax expected to take effect in April 2028.
This private jet tax is part of a broader reform of air passenger duty in Scotland. The Scottish government is set to replace the UK's Air Passenger Duty with a devolved Scottish version called Air Departure Tax (ADT) in April 2027. The SNP has indicated that ADT rates will be frozen for only 12 months, leading to warnings from the Scottish Conservatives about potential future increases that could impact business travelers and holidaymakers.
Conservative finance spokesman Craig Hoy criticized the plan, stating that the new tax would increase costs for Scottish residents already facing high taxes. He expressed concern that Scotland could become a less appealing destination for investment, potentially harming jobs and the economy. Hoy suggested that the government should focus on tax cuts to support the struggling tourism industry instead of introducing new levies.
Approximately 1,000 private jets fly in and out of Scotland each month, with a fifth of these using the state-owned Prestwick Airport. Oxfam Scotland has suggested that a private jet tax could generate around £30 million annually by imposing additional charges on luxury flights. However, official details on the tax rate and its specific implementation have not yet been released by the ministers.
Finance Secretary Jenny Gilruth released findings from a public consultation on ADT, which indicated significant support for a 'private jet supplement' among respondents. However, some participants also voiced concerns about potential negative economic consequences. The consultation also revealed backing for ADT exemptions for flights serving Highland and Island airports to support essential services. Flights from these airports to UK destinations will be exempt from ADT, maintaining a current exemption from air passenger duty. Additionally, flights from other Scottish airports to the Highlands and Islands will be tax-exempt from April, offering savings of approximately £8.30 per passenger to carriers. Conversely, flights departing Scotland for international destinations will lose their current exemption, resulting in an additional cost of about £15.50 per passenger. Ministers acknowledged that airlines might pass these increased costs on to passengers.
The government's response to the consultation stated that a Private Jet Supplement will be introduced within ADT in 2028-29, aligning with the principle that those who choose private jet travel, contributing higher per-person emissions, should bear a greater cost. All ADT rates for 2028-29, including those for private jet flights, will be detailed in the 2027-28 Scottish Budget.
Ministers have stated they have no plans to introduce a 'frequent flyer levy' targeting business travelers, citing administrative complexities and potential data privacy concerns. Scottish Greens Highlands and Islands MSP Kristopher Leask, however, suggested that the government missed an opportunity to tax frequent flyers more heavily, arguing that the current approach taxes families on holiday similarly to business travelers who fly regularly. Leask advocated for a system that exempts essential services and places a greater financial burden on those responsible for the most pollution.
Finance Secretary Jenny Gilruth commented that the private jet tax aims to ensure that individuals generating significantly higher emissions through private travel compared to commercial flights will pay more for that privilege.