Tax plans ‘make Scotland the place to be’
SCOTLAND’S new income tax system could help attract people to the country, the Finance Secretary has claimed.
Derek Mackay said the income tax plans he had set out in his draft Budget for 2018-19 would make Scotland the “fairest taxed part of the UK” and would offer the “best deal” for the majority of earners.
While he told MSPs on the finance committee that he did “not want to overplay” the reduction that some people will see in their income tax bills, he said the changes “primarily” benefited lower earners.
The Scottish Tories have repeatedly criticised the tax plans, claiming rises in some of the income tax rates make the country the highest taxed part of the UK. But Mackay hit back, saying the new five band system he is introducing “will mean 55 per cent of taxpayers, those earning up to £26,000 a year, will pay less tax than they would elsewhere in the UK”.
This would make Scotland “the lowest taxed part of the UK for the majority, and I would argue the fairest taxed part of the UK, with the best deal in terms of expenditure and entitlements also,” he said.
The Finance Secretary added: “I think it offers the best deal, so that should attract, I think, people to Scotland because of the deal and the quid pro quo it offers for what people pay.”
The proposals will see the basic rate frozen at 20p, as well as a new rate of 21p kicking in after £24,000.