Ministers seek views on shape of Scots aggregates levy

A consultation on how to structure a Scottish replacement for the UK aggregates levy has been opened by the Scottish Government. 

Since 2002 the aggregates levy has been applied to the commercial exploitation of primary aggregates such as crushed rock, gravel and sand, which are used for bulk fill in construction related activities. The Scotland Act 2016, following a recommendation of the Smith Commission, provides the Scottish Parliament with the power to introduce a devolved tax on the commercial exploitation of aggregates in Scotland.

The consultation paper states that aggregates make an important contribution to Scotland’s economy, providing materials for housing, construction, roadbuilding and other uses, and supporting employment, including in rural and remote areas. They are also required as construction materials to support the ambitions for the environment, including for diversification of the energy mix. 

The paper sets out the key arrangements for the current UK levy, seeking views as to how these could be adopted for a devolved tax. However, ministers also wish to consider and explore the case for any changes, refinements or enhancements that are consistent with the provisions of the Scotland Act, to ensure that a future tax is well designed, takes full account of the Scottish context and maximises the opportunities offered by devolution, including how the tax is administered. “In particular, we want to ensure that a future tax is aligned with the Scottish Government’s ambitions for the circular economy, and takes full account of the Scottish Approach to Taxation” – the principles and strategic objectives in Scotland’s Framework for Tax.

Responses to the consultation will lead to policy design and decision making, followed by implementation and evaluation stages.

Access the consultation here. Responses are due by 4 December 2022.