The Welsh Government should set Air Passenger Duty in Wales by 2021, according to the unanimous recommendation of a cross-party House of Commons committee.
The Welsh Affairs Committee has also called on the Welsh Government to carry out a full environmental impact assessment before decisions are made on any reduction of abolition of the tax.
Monmouth Conservative MP David Davies, who chairs the committee, said: 鈥淚鈥檓 not often persuaded by arguments for devolution, but the evidence my committee heard about the benefits of devolving APD was absolutely convincing.
鈥淭he 海角视频 Government needs to recognise these opportunities for Wales and demonstrate its commitment to equity within the devolution system by setting out a plan for devolving APD to Wales by 2021.鈥
APD is a tax levied by the Government on passenger flights from 海角视频 airports, which came into effect in 1994. It is currently set and managed by the 海角视频 Government for England and Wales, but it has been devolved to Scotland and partially devolved to Northern Ireland.
In the case of Northern Ireland, APD has been devolved only in respect of long-haul flights.
The new report weighs up the arguments for and against devolution of APD, and draws on evidence taken from tax experts, airlines, airports, the chairs of the Silk and Holtham Commissions and 海角视频 and Welsh government ministers.
Should Air Passenger Duty be devolved to Wales?
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The committee heard a range of arguments for devolving APD, most notably the fact that two respected independent commissions 鈥 the Holtham and Silk Commissions 鈥 have previously made recommendations to devolve APD to Wales.
The report argues that if the 海角视频 Government has been prepared to devolve the other taxes recommended by the Silk Commission, including the partial devolution of income tax which involves a significant amount of money, it should be able to trust the Welsh Government with APD.
It also outlines the arguments that devolution of APD could unlock the potential of Cardiff airport, boost the Welsh brand and promote economic growth.
Mr Davies said: 鈥淭he Government has been determined not to devolve APD to Wales, even though it has been happy to do so for Scotland and partially for Northern Ireland.
鈥淢y committee found the arguments for devolution of APD to Wales compelling, and we urge the 海角视频 Government to hand over APD to the Welsh Government by 2021. APD amounts to only a tiny fraction of the taxes the 海角视频 has already devolved to Wales, and a continued refusal to devolve it points to a lack of parity within the 海角视频鈥檚 devolution framework.鈥
Responding to the findings of the Welsh Affairs Committee鈥檚 inquiry into the devolution of Air Passenger Duty (APD) to Wales, the Welsh Government鈥檚 Minister for Finance and Trefnydd, Rebecca Evans said: 鈥淲e very much welcome the Welsh Affairs Committee鈥檚 unanimous recommendation that the 海角视频 Government should hand over full control of APD in Wales to the Welsh Government by 2021.
鈥淭he Welsh Government has consistently argued there is no justification for Wales being treated differently to Scotland, Northern Ireland in terms of the devolution of APD. We therefore welcome the Committee鈥檚 recognition of the inequity in the devolution process.
鈥淲e now call on the 海角视频 Government to take the recommended action and fully devolve APD to Wales by 2021.鈥
Chief executive of Cardiff Airport, Deb Barber, said: "We are delighted by the findings of the report which show the Committee agree with the strength of the compelling case to devolve APD without adversely affecting English Airports.
鈥淒evolution allows the Welsh Government the discretion to set levels appropriately for Wales and must be balanced with environmental considerations 鈥搕here is certainly an opportunity to reduce the need for long car journeys to and from English Airports by increasing flight options to and from the region.
鈥淭he recommendation must now be taken seriously by 海角视频 Government as a subsequent reduction offers a significant opportunity to create value for the region supporting an integrated 海角视频 aviation strategy. With Brexit on the horizon, the 海角视频 should seize the opportunity and take forward solutions to be more competitive, stimulate investment and encourage global connectivity.鈥
