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The Scottish National Party is to discuss with opposition political parties whether and how to use the nation's new powers to set income tax rates, secured as part of the devolution agreement with the UK.
Ahead of the next Budget in March 2018, Scottish First Minister Nicola Sturgeon said the party would publish a paper that will set out the current distribution of income tax liabilities in Scotland; analyze a variety of different options, including the proposals of the other parties; explain the interaction between tax policy and the fiscal framework; and provide international comparisons.
She said that the paper would be used to "inform the discussions we will have with other parties ahead of the Budget."
"I give an assurance today that the Scottish Government will go into these discussions with an open mind and with the best interests of the country as a whole as our guiding principle, and I invite other parties to do likewise," she said.
From April 1, 2017, Scotland gained the power to set its own income tax rates and thresholds, within reasonable bounds. Before then, Scottish workers were subject to the same income tax treatment as the rest of the UK. Scotland chose to alter only the tax thresholds and not the rates in last year's fiscal package. As a result, the higher rate (45 percent, top tax rate) threshold in Scotland has been set at GBP43,430 (USD53,935) for 2017-18, compared with GBP45,000 (USD55,894) in the rest of the UK.
Sturgeon also said in her speech that the government would accelerate its review into business rates and publish an implementation plan by the end of this year. She also expressed interest in introducing "some form of land value based tax."
Ahead of the next Budget in March 2018, Scottish First Minister Nicola Sturgeon said the party would publish a paper that will set out the current distribution of income tax liabilities in Scotland; analyze a variety of different options, including the proposals of the other parties; explain the interaction between tax policy and the fiscal framework; and provide international comparisons.
She said that the paper would be used to "inform the discussions we will have with other parties ahead of the Budget."
"I give an assurance today that the Scottish Government will go into these discussions with an open mind and with the best interests of the country as a whole as our guiding principle, and I invite other parties to do likewise," she said.
From April 1, 2017, Scotland gained the power to set its own income tax rates and thresholds, within reasonable bounds. Before then, Scottish workers were subject to the same income tax treatment as the rest of the UK. Scotland chose to alter only the tax thresholds and not the rates in last year's fiscal package. As a result, the higher rate (45 percent, top tax rate) threshold in Scotland has been set at GBP43,430 (USD53,935) for 2017-18, compared with GBP45,000 (USD55,894) in the rest of the UK.
Sturgeon also said in her speech that the government would accelerate its review into business rates and publish an implementation plan by the end of this year. She also expressed interest in introducing "some form of land value based tax."