Published: Friday, 28th March, 2008 16:30
Ability to pay is fairer taxation
By Stuart McMillan
THE Scottish Government recently published its proposals to replace the council tax with a local income tax based on the ability to pay.
The aim is to replace the council tax, which has risen by 60 per cent since 1997, with a more progressive system.
For too long the population has faced the burden of a high and unjust council tax, with Inverclyde having one of the highest rates in Scotland (current Band D property is £1,198.00).
The proposal aims to scrap the current council tax and introduce a system based on a 3p-in-the-pound rate.
The tax will be levied on income already subject to basic and higher rates in UK income tax, for instance wages or rental income, and tax-free personal allowances will match UK allowance levels.
I welcome the announcement by the Government and look forward to the day when the council tax is replaced by a fairer, more progressive system of taxation.
Basing the taxation system on the ability to pay will see those earning the least paying less, and only the richest 10 per cent of households will, on average, pay more.
I was, however, delighted Inverclyde Council, like all other councils apart from Stirling, introduced the council tax freeze for next year.
This freeze will certainly aid many people in Inverclyde.
If you would like a copy of the consultation document, visit: www.scotland.gov.uk/afairertax


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