By David Scott in Crieff
03 September 2009
Leading revenue officials are to set up a new inquiry into local taxation in Scotland.
The Institute of Revenues Rating and Valuation will investigate a range of funding options, including property-based taxes and ‘other buoyant sources of funding’.
The IRRV announced the initiative at its Scottish conference at Crieff on September 3. It is further evidence that bodies that were critical of the Scottish Government’s plans for a local income tax will attempt to re-open the debate on local government finance. The Scottish National Party shelved its controversial plans to abolish the council tax this year.
IRRV Scotland president Brian Jeffrey said: ‘We have before us an opportunity to be bold and innovative and to tailor a local taxation system that suits the needs of Scottish people, without sacrificing the financial stability of local authority services.’
According to an IRRV document giving details of the inquiry, the review will assess both property-based and non-property based options.
Significantly, consideration will be given to whether a mix of options would be appropriate. These include ‘localisation’ of existing taxes, such as value added tax and fuel taxes, and of lottery tax income. An LIT has not been ruled out as one of a ‘best blend’ of options.
Other alternatives include traffic management charges (such as congestion charging), local sales taxes, localised vehicle excise duty and stamp duty and an assigned proportion of income tax.
The inquiry will also examine whether the council tax and non-domestic rates systems could be radically reformed. The method and frequency of valuation, the use of banding, the reform of discount and exemption systems, and changes to the council tax benefits system and business rates will be investigated.
The IRRV said its Scottish association believed the time was right for it to take a leading part in the debate about what local taxation system would best serve the needs of Scotland.
The inquiry committee, chaired by IRRV chief executive David Magor, will aim to present its final report to the 2010 IRRV Scottish conference.
03 September 2009
Leading revenue officials are to set up a new inquiry into local taxation in Scotland.
The Institute of Revenues Rating and Valuation will investigate a range of funding options, including property-based taxes and ‘other buoyant sources of funding’.
The IRRV announced the initiative at its Scottish conference at Crieff on September 3. It is further evidence that bodies that were critical of the Scottish Government’s plans for a local income tax will attempt to re-open the debate on local government finance. The Scottish National Party shelved its controversial plans to abolish the council tax this year.
IRRV Scotland president Brian Jeffrey said: ‘We have before us an opportunity to be bold and innovative and to tailor a local taxation system that suits the needs of Scottish people, without sacrificing the financial stability of local authority services.’
According to an IRRV document giving details of the inquiry, the review will assess both property-based and non-property based options.
Significantly, consideration will be given to whether a mix of options would be appropriate. These include ‘localisation’ of existing taxes, such as value added tax and fuel taxes, and of lottery tax income. An LIT has not been ruled out as one of a ‘best blend’ of options.
Other alternatives include traffic management charges (such as congestion charging), local sales taxes, localised vehicle excise duty and stamp duty and an assigned proportion of income tax.
The inquiry will also examine whether the council tax and non-domestic rates systems could be radically reformed. The method and frequency of valuation, the use of banding, the reform of discount and exemption systems, and changes to the council tax benefits system and business rates will be investigated.
The IRRV said its Scottish association believed the time was right for it to take a leading part in the debate about what local taxation system would best serve the needs of Scotland.
The inquiry committee, chaired by IRRV chief executive David Magor, will aim to present its final report to the 2010 IRRV Scottish conference.
