The Scottish Government has released the summary of responses to their consultation, 'Tax policy and the Budget – a framework for tax'. This details stakeholder feedback on how the Scottish Government could enhance its approach to tax policy over its next parliamentary session.

 The 47 responses to the Tax policy and budget: consultation document are as summarised as follows:

  • The framework was widely welcomed for its accessibility and for giving stakeholders the opportunity to engage with the Scottish Government.
  • Existing powers should be used effectively to ensure the foundations for further tax policy changes were sound.
  • A clear division of responsibility would help effective collaboration between different levels of Government.
  • A mix of views was given on the devolution of tax powers in the future. Some stakeholders wanted closer alignment with UK rates whereas others called for a more progressive approach.
  • Support was also given for:
    • Having a phased approach to bringing Non-Domestic Rates back to pre-COVID-19 levels.
    • Using tax policy to help achieve carbon neutrality.
    • Having a simple, transparent and accessible tax system going forward.

Next steps

The final version of the Framework for Tax was published on 16 December, this included the following changes raised by the consultation:

  • A description of the different bodies involved in the development and delivery of tax policy.
  • A reframing of the 'effectiveness' principle to be applied to tax future policies, enhancing the commitment to tackling tax avoidance.

Useful guides on this topic

Views sought on Scottish Framework for Tax
The Scottish Government has announced a call for evidence seeking views on its draft Framework for Tax which explains the approach to tax policy for the new session of the Scottish Parliament.

External Links

Tax policy and the Budget – a framework for tax

Framework for Tax (Final)

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