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The National (Scotland)
The National (Scotland)
National
Jamie Calder

Scottish Parliament backs plans for tax shake-up with private jet and mansion levies

The vote comes campaigning from the Greens and SNP (Image: Archive)

THE Scottish Parliament has backed the creation of a new approach to taxation, including plans to implement a mansion tax and private jet levy.

MSPs went to the chamber on Thursday to debate the new “fair, progressive and sustainable” approach to tax.

The motion, which passed by 84 votes to 28, with 10 abstentions, highlighted the role taxes have in the delivery of public services, as it welcomed “progress made towards the creation of a private jet tax and a mansion tax”.

A Labour amendment, calling for an “immediate and comprehensive review of business rates” was also passed by 95 votes to 27.

Posting on X/Twitter, the First Minister celebrated the vote, saying: "In a cost of living crisis, it is right that those with the broadest shoulders contribute a bit more – while the majority of taxpayers in Scotland continue to pay less tax than elsewhere in the UK."

The vote was largely symbolic, as the SNP's Budget already set out plans to implement a mansion tax by 2028, as well as plans for a private jet tax.

The budget laid out plans for two new council tax bands to be introduced for the those with the most expensive homes.

The new bands will be based on new valuations and impact homes worth more than £1 million.

Current council tax bands go from A to H and are based on severely outdated property valuations drawn up in 1991, meaning many Scots are likely in the wrong band and those living in the most expensive properties are getting a better deal than those in lower bands.

An airport departure tax was also planned and is expected to be put in place by April next year, with a consultation on the potential exemption for the Highlands and Islands , while the private jet tax would come in at a later date.

The Greens have long campaigned for a private jet levy and other forms of wealth taxes, also celebrating the vote on X/Twitter.

Although, a Green amendment, arguing that “progressive reform of property tax could play a powerful role in wealth taxation” was defeated by 30 votes to 37, with 55 abstentions.

An amendment from Reform UK, warning that increases in wealth taxes “can lead to a significant flight of tax revenues” was defeated by 16 votes to 94, with 10 abstentions, while a Conservative amendment, calling on the Government to “reduce income tax to stimulate growth”, was also defeated by 28 votes to 94.

A Liberal Democrat amendment, urging ministers to “prioritise getting Scotland’s finances in order” was rejected by 52 votes to 69.

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