SCOTLAND'S annual income from taxation is expected to rise to more than £19 billion in under five years, a new report has claimed.
Released in conjunction with the Scottish Budget, which was delivered by Public Finance Minister Kate Forbes, the Scottish Fiscal Commission's forecast suggests a jump in the amount of total tax from £15.2bn to £19.1bn by 2024-25, with income tax alone bringing in an extra £51 million.
The Scottish Government was given the power to raise funds through income tax and to change tax rates in 2017.
Public Finance Minister Kate Forbes announced in her speech outlining the budget that the only change to Scotland's tax policy would be a freeze on the higher rate threshold of £43,430.
The SFC report said: "The Scottish Government has announced that in 2020-21 the higher rate threshold will be frozen at the same rate, £43,430, as in 2019-20.
"We expect this freezing of the higher rate threshold, relative to our baseline assumption of increasing it in line with inflation, to raise an additional £51m for the Scottish budget in 2020-21.
"This policy means there will be more higher rate taxpayers in Scotland than would otherwise have been the case."
Speaking after the announcement of the budget, Forbes said: "Scotland continues to have the fairest and most progressive income tax system in the UK, with more than half of taxpayers paying less income tax in Scotland than elsewhere in the UK.
"We will use the resources raised through our tax decisions in this budget to support our vital public services, end Scotland's contribution to climate change, boost our economy and meet our ambitious targets of tackling child poverty through initiatives like the Scottish Child Payment.
"Based on commitments made by the UK Government in their autumn Budget 2018, we do not expect any further increase in income tax divergence between Scotland and the rest of the UK this year.
"It is now up to the UK Government to ensure that divergence does not increase when they deliver their Budget on March 11."
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