Salmond wants tax powers to promote business

Published on Monday 15 June 2009 21:42

ALEX Salmond yesterday called for an "equitable" tax system which encourages business activity in Scotland.

In a speech to the Forbes conference, the First Minister said other smaller European countries had used such a system to their advantage.

And he told delegates that there is a difference between transferring "variability" of tax-raising powers – as proposed by the Calman Commission on devolution yesterday – and having control of taxation.

Salmond said: "I can see experience of a number of European countries who have used corporate tax in a very judicious way in order to attract business."

Ireland, Austria, Finland and the Baltic states were examples of this, Salmond argued.

The First Minister added: "The placement of corporate tax below your major larger competitor can yield very substantial dividends in not just attracting investment but also generating taxation revenues.

"You need a balance between an equitable personal tax and a competitive corporate tax."

Salmond also criticised the UK Treasury, saying he had never seen an organisation which "misplaced" its forecasts so many times.

He told delegates there are three great lies in life.

"One is 'darling I'll respect you in the morning', two is 'the cheque is in the post' and the third is 'I'm from the United Kingdom Treasury and I desperately want to help Scotland', he said to laughter from delegates.

He added: "I think you're probably better running your own affairs than letting somebody else do it for you."