The SNP’s flagship property tax is facing a huge shortfall in its first year, official figures show. Evidence presented to the Finance Committee regarding Revenue Scotland shows that the Land and Buildings Transaction Tax – the first devolved tax wholly set by the SNP Government - faces an 18 per cent shortfall in revenue on residential properties compared to what it was projected to make by Finance Secretary JOHN SWINNEY.
In cash terms that figure is over £40 million.Scottish Labour have called on the SNP administration to urgently review their projections, and said that the shortfall strengthens the case for a Scottish Office for Budget Responsibility.
The tax was brought in with no analysis undertaken of behavioural affects – and the latest evidence is a warning cone about the adoption of ‘more powers’ without an assessment of the likely consequences.
Public Services and Wealth Creation Spokesperson JACKIE BAILLIE said, “The Scottish public need to have faith that the government will raise as much money from their taxes that they say they will. Public finances must be open and accountable.”