The chief executive of British Airways parent company IAG has called on chancellor George Osborne to scrap APD to increase investment for the UK.
Willie Walsh’s demand comes as Scotland confirmed plans to halve APD as part of certain powers devolved to the Scottish government after last year’s independence vote.
He made the comments in his submission to the Comprehensive Spending Review, in which the government has asked departments to find £20 billion over four years.
APD is “the highest tax of its kind anywhere in the world and acts as a major brake on tourism to the UK and inward investment”, said Walsh.
Last year, Osborne announced a reduction in the controversial tax with all long-haul flights carrying the same lower-band B tax rate.
The GTMC welcomed the initiative by the Scottish government to halve APD.
“The GTMC’s ultimate aim is the abolition of APD across the UK and we applaud the commitment made by the Scottish Government to achieve this goal in Scotland,” said GTMC CEO Paul Wait.
“In the meantime, we have long called for the UK Government to match any reduction proposed by any devolved administration so that no part of the UK is put at a competitive disadvantage.”
In July, the government has published a discussion paper to review the impact of APD devolution to Scotland and Wales.