Changes to income tax in Scotland will raise around £11.7 billion in 2019/20, while protecting low and middle income earners, the Finance Secretary has said.
Speaking ahead of a vote in the Scottish Parliament on Tuesday to set rates and bands for Scottish income tax, Finance Secretary Derek Mackay says tax plans outlined in the Scottish Budget will raise vital revenue to support investment in public services.
Speaking ahead of the debate, Mr 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.
And 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 2019/20 will be held on Thursday.
The proposals mean 55% of taxpayers will pay less income tax next year than if they lived elsewhere in the UK and 99% will pay less income tax than they do this year on their current income.
Income tax rates will remain the same in 2019-20, however there will be an increase to the size of the Starter and Basic Rate bands by inflation to protect the lowest and middle earning taxpayers.
Freezing the higher rate threshold – paid by only the top 15% of taxpayers in Scotland – at £43,430 is forecast to deliver an extra £68 million.
