THE SNP and Labour have clashed over calls to scrap Air Passenger Duty.

Transport Minister Keith Brown wants the UK Government to devolve power to Scotland so it can be abolished.

Labour said the economic and environmental impacts must be considered first and the Scottish Greens said the aviation industry was given too much favouritism already.

Airports have branded the tax a barrier to attracting new routes and say it leads to passengers flying to other destinations where fares are cheaper.

A study by York University said APD could cost Scotland's economy £200m a year by 2016.

Mr Brown said: "Air Passenger Duty is the most expensive tax of its kind anywhere in the world. The UK aviation policy is Heathrow-centric where they can charge whatever they like but regional airports don't have that luxury."

He said the changes to the top two levels of APD only ­affected long haul flights and wouldn't help airports outside the south east of England, where there are mostly short and medium destinations.

Mr Brown added: "Heathrow will encourage more long haul flights at the expense of ­regional airports."

Labour's Transport Spokesman said while the party was open to reform, it was not ­convinced by the arguments for a complete abolition.

Labour's Mark Griffin said abolition would give a tax cut to airlines and the revenue from tax might not be replaced.

He said: "I agree there will be an increase in passengers coming in but there will also be an increase in those leaving, with an impact on the UK.

"The Scottish Government says the cost will be offset by an increase in VAT receipts but will a 3% increase be enough to offset the lost revenue."

He said the public purse would be £135m a year worse off, asking: "Which public services would be cut or who will pay higher tax to pay for it?"

The Conservative's transport spokesman Alex Johnstone said he was prepared to propose abolition for the ­benefit of passengers.

However, he added: "What the SNP miss is the only way to get rid of it, is to abolish it at a UK level, so Scots don't need to pay it at the London end."

Green MSP Patrick Harvie said aviation gets more tax breaks than other modes of transport, and remained an "expansionable profitable ­industry. It can't be given a free ride for much longer".

stewart.paterson@ eveningtimes.co.uk