SNP pledge to scrap council tax
Scottish parliament at Holyrood
Wednesday, 03, Sep 2008 11:33
The Scottish National Party (SNP) has pledged to abolish council tax in Scotland, replacing it with a local income tax.
Outlining the draft legislative programme for the year ahead this morning, the party's leader Alex Salmond, confirmed a Council Tax Abolition Bill would be tabled in the coming year.
The party claim the "vast majority of Scots will be better off as result" following the implementation of a revised system based on a progressive local scale.
However, responding to the statement Labour said many flagship SNP policies were already "completely discredited".
The party's finance secretary, John Swinney, has previously stated the proposals will mean the biggest tax cut in Scotland in a generation, with those on low and middle incomes better off by an average £350 to £535 a year.
Mr Swinney said: "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.
"This reform is designed to offer most help to those on low and middle incomes and represents the biggest tax cut for a generation."
The SNP proposes:
A three per cent rate of tax applied to the income that is already subject to basic and higher rates of UK income tax.
A tax free personal allowance that matches the UK personal allowance levels.
Collection that complements the existing national system through Pay as You Earn (PAYE) and self-assessment.
Exemptions for savings and investment income.
A tax for second homes, subject to local requirements and with flexibility for councils to determine the rate of tax. It is proposed this will be collected by councils.
Three of the 15 bills in today's programme focus on the environment, including one to target marine conservation, with the Climate Change Bill setting tough new targets.
Health is also prominent in the programme, which was presented a Holyrood this morning.
The Scottish government is also pressing ahead with measures to limit alcohol off-sales and to block tobacco advertising in shops.
Chris O'Toole