Public given chance to offer views on Scottish income tax rate

What rate should the new Scottish rate of income tax be set at, and why? Views from the public are being invited by the Scottish Parliament’s Finance Committee as it begins its scrutiny of the 2016-17 draft budget.

From next year, Holyrood will have responsibility for setting a Scottish rate of income tax (SRIT), under the powers devolved in the Scotland Act 2012. The Act provides for the basic rate, higher rate and additional rate of the non-savings income of a Scottish taxpayer to be reduced by 10 percentage points, and the Scottish Parliament has to set the SRIT on an annual basis which will apply equally to all of these rates.

Among the questions on which the committee is inviting views are:

• What should the rate be for SRIT and why?
• If SRIT should be above 10%, how should the additional funding be allocated?
• If SRIT should be below 10% how should the reduction be funded from existing expenditure?
• Has the introduction of SRIT been sufficiently well publicised to employers and taxpayers?

Finance Committee convener Kenneth Gibson MSP said: “From next year, revenue from the Scottish rate of income tax will be a significant part of the money spent on Scotland’s public services. There are key decisions to be made on the level the Scottish rate should be set at and how taxpayers and employers are informed about the introduction of SRIT.

“It is important for the Finance Committee to scrutinise the introduction of this new power and I would encourage people to submit their views to inform the committee’s inquiry.”

Click here to access the call for evidence. The closing date for submissions is 28 August 2015.