THE Scottish Government is considering putting up tax for the highest earners from next year, the Finance Secretary has confirmed.
Derek Mackay said the Government’s council of economic advisers was looking at whether a 50p rate could be introduced from 2018-19.
First Minister Nicola Sturgeon has hinted that she still supports a 50p top rate of tax across the UK – her party’s policy in 2015 – ahead of the General Election in June.
She has faced criticism for failing to use new powers at Holyrood to implement the policy north of the border over fears it could harm Scotland’s economy as higher earners seek to avoid it. Last year, Sturgeon tasked advisers with looking at the issue on an annual basis to see whether the risk could be mitigated.
Labour MSP Anas Sarwar asked the Finance Secretary to set out the Government’s current position.
Mackay told MSPs at Holyrood: “In February, the Scottish Parliament endorsed this Scottish Government’s proposal that the additional rate of income tax should be maintained at 45p for the tax year 2017-18.
“Analysis produced by the Scottish Government showed that there is a revenue risk associated with raising the additional rate.
“However, the First Minister has asked the council of economic advisers to consider how and to what extent this risk can be mitigated, and if we are sufficiently assured that it can be, that we consider raising the additional rate from 45p to 50p from 2018-19 onwards as part of budget considerations.”
Scottish Labour leader Kezia Dugdale responded: “This desperate attempt to win back voters who are deserting the SNP for its record of failure in office won’t fool anyone.
“In 2015 Nicola Sturgeon supported a 50p top rate of income tax, then joined forces with the Tories to vote down such a proposal in the Scottish Parliament.
“She says one thing before an election in an attempt to sound left-wing, but acts right when she actually has to make decisions in government.”
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