Question reference: S5W-14677
- Asked by: Alex Neil, MSP for Airdrie and Shotts, Scottish National Party
- Date lodged: 15 February 2018
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Current status: Answered by Derek Mackay on 13 March 2018
Question
To ask the Scottish Government what its position is on whether the Scottish Parliament has the legislative competence to introduce a so-called wealth tax similar to that proposed by the Scottish Labour Party.
Answer
It is not possible for the Scottish Parliament to introduce a new tax unilaterally. Under the powers conferred by the Scotland Act 2012, the Scottish Government could make a case to introduce such a tax but would need the agreement of the UK Government to do so. The process for obtaining such agreement would involve lengthy negotiation and the collation of substantial evidence, including in respect of the macro-economic impact of any proposed tax.
The Scottish Labour Party have provided few details on their proposal for a wealth tax and how it would work. Based on the very limited information that has been given, there would clearly be significant challenges, which they have so far failed to address, in terms of identification of taxpayers, assessment of wealth, administration of the new tax and enforcement and compliance. It would not be possible to make a case to the UK Government without clarity on these issues.