Date lodged: 20 December 2017
To ask the Scottish Government, in light of its recognition in the Draft Budget that funding for local government services can only be protected in real terms through council tax rises, what impact such a move could have on the overall tax burden of the 70% of people that it has suggested will pay less in income tax because of its proposals, including what proportion might pay more in taxation overall.
Answered by: Derek Mackay 11 January 2018
Income tax is paid by individuals on the basis of their earnings, and council tax by occupants of a domestic dwelling based on the property’s banding. There is therefore no direct link between the income tax and council tax an individual pays.
The Draft Budget 2017-18 outlines that, for a given income, 70% of taxpayers will pay less income tax in 2018-19 than they do in 2017-18. Additionally, the Scottish Government reformed the Council Tax system with 2016 legislation that raised additional revenue for public services whilst protecting three in four Scottish households from paying more.