Scottish National Party calls for Council Tax to be scrapped

Scottish National Party shadow finance minister
has called for a local income tax to replace Council Tax north of
the border.

The MPS said that it was time Scotland had a taxation system based on the
ability to pay, as the current Council Tax system penalises those on low and
fixed incomes and has lower collection rates.

Swinney made the call following the publication of the
Local Government Financial Statistics 2005-06 report
, which stated that
Council Tax had risen by 60% since Labour came to power and that the total
Council Tax collection rate was only 93.3%.

Swinney said the SNP’s plans for a Local Income Tax would result in a higher
collection rate.

‘The SNP believes in a progressive local income tax based on the ability to
pay, not the value of property,’ said Swinney. ‘Income tax is known to have a
higher collection rate, so overall it will be a more effective – as well as
fairer – system for the people of Scotland.’

Meanwhile, as the campaign for May’s Elections for the Scottish Parliament
hots up, SNP leader Alex Salmond has accused Labour first minister
Jack McConnell of
‘scaremongering’ over the impact of a vote for independence on the financial
services industry in Edinburgh and Scotland.

He said: ‘Mr McConnell has been dragged into the negative, fear-mongering
campaign run by his London masters. What Mr McConnell knows about the financial
services industry could be comfortably accommodated on the back of a very small

Further links:

Council tax bills soar above inflation

Higher taxes for non-recycling

Business groups disagree over fiscal
autonomy for Scotland

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