Scottish transport minister Derek Mackay has said that the air passenger duty (APD) should be devolved to Scotland’s government.

The APD is a significant source of revenue, raising £2.9 billion for the 2013-14 financial year, of which £200 million came from Scotland. Britain is one of only five EU countries that still levy a tax on passenger departures ijn this way.

Control of APD rates for direct long haul flights has already been devolved to the government of Northern Ireland, which abolished it.

Mr Mackay said: “UK APD is the most expensive tax of its kind in Europe and its impact on Scotland cannot continue to be ignored.”

He added that many airlines feel it is a major difficulty when it comes to setting up and maintaining routes.

It has also been suggested that abolishing the tax could help stimulate Scottish tourism and business.

Mr Mackay also said that the move could help the air transport industry “maximise its potential”.