Proposals to axe Amazon tax welcomed
drop a new business rates levy on out of town premises, as well as online retailers like Amazon
elict land value tax could help to achieve this on some sites by establishing a financial cost for keeping land idle,
Hamish Trench, chief executive of Scottish Land Commission, said: “This report provides a good evidence base for us to engage widely on the potential role land value taxation could play in making more of Scotland’s land.
“The research suggests land value tax could contribute to addressing key land reform objectives, including bringing vacant and derelict sites into use, reinvesting rising land values to public benefit and moving to a more diverse and productive pattern of land ownership.
“While the theoretical case for land value tax is strong, this research focused on
international experience in implementing land value tax and it provides useful lessons on both the policy approach and practical issues that need to be considered.”
The Scottish Government asked the Commission to look at the potential for introducing some form of land value based tax in Scotland. The report was complied by researchers from the University of Reading.
Land value taxes have gained favour in recent years as a means to address the soaring rises in property prices. As areas become more desirable, the land value increases and the system being proposed could then capture some of this increase and returning gains with cash for local amenities, and public services. The land
tax base and/or tax structure could support the move to a more productive and diverse pattern of rural land ownership and use.
Scottish Greens MSP Andy Wightman said: “This is a very welcome report which recognises the massive untapped potential of using land values to raise funds for public services, as well as encouraging fairer and more productive ownership of land, rather than the speculative hoarding of it which blights many communities.
“It’s good to see this longstanding Scottish Greens policy being actively considered by the Scottish Land Commission. In the meantime, the SNP needs to get on with the urgent reforms needed.” Business leaders in Scotland have welcomed the prospect of a so-called Amazon tax in Scotland being axed.
The Scottish Government is reportedly now poised now to drop plans new business rates levy on out of town premises, as well as online retailers.
It’s understood that ministers have now been persuaded that Uk-wide plans for a levy on online profits are a better way forward, after this was unveiled by Chancellor Philip Hammond.
David Lonsdale of the Scottish Retail Consortium (SRC) said: “It would suggest the Finance Secretary has listened to the retail industry and the growing chorus from across business and commercial life who have spoken up against this costly and complex new tax.”
Twenty-one of the country’s leading business organisations penned a joint letter to Finance Secretary Derek Mackay last month urging him to scrap the proposed levy. The levy was among the recommendations of the recent Barclay review of business rates in Scotland which ministers are currently consulting on. A Scottish Government spokesman said: “The consultation, which closed in September, also sought views on appropriate safeguards for this scheme and a decision will be made following full analysis of the responses.”