Scotland's top trade unionist has warned the SNP Government's plans for a mansion tax are just “tinkering around” the edges.
Roz Foyer, the general secretary of the STUC, said the proposal falls “desperately short” of the sort of tax measures needed to raise cash for services.
New council tax bands planned
John Swinney's Government is planning to create two new council tax bands for the most expensive properties.
Band I will be levied on homes valued between £1m and £2m, while Band J will apply to luxury pads worth more than £2m.
Ministers estimate the new rates will affect around 15,000 properties - 1% of the country's housing stock.
Critics question revenue impact
Critics also say the new tax will only raise between £12m and £16m, a tiny proportion of the local government budget.
Scotland is facing a looming budget black hole of over £4bn.
Speaking to the Record, Foyer said: “Whilst the introduction of the Mansion Tax is a step in the right direction from the Scottish Government, it falls desperately short of the bold, radical change required to raise the revenue needed to invest in our public services.
“Tinkering around the edges of a broken system won't cut it; the time for half measures is over, especially when the Scottish Government seem intent on cutting public sector workers instead of using their full tax powers to invest in the services those workers uphold.
“We need to see the Council Tax scrapped once and for all and replaced with a fairer, more just alternative that raises more money and rebates those in lower income households impacted by any changes.
Wider reform calls
Sara Cowan, a member of Tax Justice Scotland, said: “While we welcome measures taken to introduce a Mansion tax, failure to progress wider reform to local taxes is severely damaging the public services and amenities we all rely on, but which are particularly vital for women, disabled people and those with low incomes.
“We've been hearing from women across Scotland their desire for change. To create a fair system where those with greater levels of wealth pay their fair share.
“Let's hope the introduction of the Mansion tax is the first action in a series to create a fairer tax system, one that allows councils to invest in our local communities and tackle long-standing inequalities.”
Other critics say the new tax will disproportionately benefit Edinburgh Council, which has a higher number of expensive properties.
Scotland currently has eight council tax bands, from A to H. Councils can alter the rates, which vary across local authority areas.
