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Bob Doris MSP welcomes Local Income Tax consultation
Tuesday, 11 March 2008

Council Tax billGlasgow SNP MSP Bob Doris has welcomed the publication of the Scottish Governments consultation into the replacement of the unfair Council tax. The consultation is open to all and will run until the 18th July.

Speaking in Glasgow Mr Doris said: "The Scottish Government stood for election with a clearly stated proposal to abolish the council tax and replace it with a fairer local tax based on ability to pay. As the first step in that process we are consulting the Scottish people on our proposals and asking for their views.

"We know that 88% of people want the Council Tax scrapped.

"We also know that the Council Tax was increased by a massive 60% since its inception.

"As a Glasgow MSP where the average Band D rate is £1,213 I know full well the misery that has caused.

"The historic concordat between the Scottish Government and local authorities has already seen the
year on year rises frozen until we can replace it with a fairer system.

"I'd urge all Glaswegians to make their voice heard.  You can access the consultation here."

Notes:

Under the Scottish Government's proposals, on average:

  • Single pensioners will be better off by £7.30 a week
  • Pensioner couples will be better off by £13.80 a week
  • Couples without children will be better off by £3.40 a week
  • Couples with children will be better off by £3.10 a week
  • One parent families will be better off by £5.40 a week
  • Single people will be better off by £3.30 a week
  • Households with multiple taxpayers will be better off by £2.50 a week
  • Only the top income decile will, on average, pay more

The consultation proposes:

  • A 3 per cent rate of tax applied to the income that is already subject to basic and higher rates of UK income tax
  • A tax free personal allowance that matches the UK personal allowance levels
  • Collection that complements the existing national system through Pay as You Earn (PAYE) and self-assessment
  • Exemptions for savings and investment income
  • A tax for second homes, subject to local requirements and with flexibility for councils to determine the rate of tax. It is proposed this will be collected by councils.

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