CHANGES to income tax in Scotland will help to protect low and middle-income earners, according to Finance Secretary Derek Mackay.
MSPs will vote on Scottish rates and limits for the tax year 2019-20 today.
No changes were made to rates and no new bands were introduced or removed in the Budget announced in December, following a reform of income tax in 2017, which increased higher rates and brought in two additional income-tax bands.
The starter and basic rate bands of 19p and 20p respectively will increase in line with inflation while the threshold for the higher rate of tax was frozen at £43,430 – unlike in the rest of the UK where it will rise to £50,000 in April.
Ahead of the vote, Mackay said: "Our decisions have resulted in a more progressive tax system, protecting those lower and middle income taxpayers while raising additional revenue to invest in our public services and the Scottish economy. Our policies on tax make Scotland an attractive place to live, work and invest.
"The Scottish Budget proposes an additional £2 billion of investment. It provides an increase of almost £730 million for health and care services, more than £180 million to raise attainment in our schools and gives a vital boost to our economy through a £5 billion infrastructure programme.
"It does so in the context of continuing UK austerity and against a backdrop of uncertainty around Brexit."
A final vote on the Scottish Budget for 2019/20 will be held on Thursday.
The Scottish Government has indicated that 55% of taxpayers will pay less income tax next year than if they lived elsewhere in the UK, with 99% paying less income tax than they do this year on their current income.
Freezing the higher rate threshold, paid by only the top 15% of Scottish taxpayers at £43,430 is expected to deliver an additional £68m.
In his speech today, Scottish Conservative finance spokesman Murdo Fraser will say: “Today the SNP have let these people down again. We will say to the Scottish people, there is at least one party that is on your side, one party that does not want to see the income-tax gap between Scotland and the rest of the UK growing, one party which will oppose the unfair car park tax, and that is the Scottish Conservatives.
Scottish Greens co-convener Patrick Harvie indicated they will allow the resolution to pass.
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