SNP tax plans would benefit 9 in 10 Scots

Published on Tuesday 11 March 2008 16:43

Most council tax payers would be better off under the SNP's plans for a 3p in the pound local income tax, Finance Secretary John Swinney claimed today.

Launching a four-month consultation on the proposal, he claimed only the top ten per cent of earners would pay more.

The Scottish Government's plans would involve a tax-free personal allowance which matches the UK personal allowance; exemptions for savings and investments; and a separate tax on second homes.

Mr Swinney said: "The council tax is unfair, regressive and penalises people on low incomes.

"The proposal to scrap the council tax and replace it with a local income tax represents the most progressive overhaul of Scottish taxation in years and real help for hard-pressed taxpayers.

"The people of Scotland will be better off paying a fairer, local income tax, based solely on the ability to pay. More than four out of five households will be better off or no worse off under our local income tax."

He said the earliest point that the policy could be introduced would be 2011/12.

And he said he could see no reason why HM Revenue & Customs should not collect the tax, but said other options were available if necessary, including a Scottish collection agency.

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