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Scots Could Pay More Or Less Tax
A Holyrood committee is to consider if new powers should be used to raise or lower income tax in Scotland.
MSPs on the Finance Committee will look at what the Scottish rate of income tax should be set at when it comes into effect next year.
In addition, they will also consider if companies and individuals are prepared for the introduction of the new levy in April.
The change will see the UK Treasury deduct 10p from standard and upper rates of income tax in Scotland, with MSPs given the power to decide how to raise cash.
The new powers, which are part of the 2012 Scotland Act, will mean people north of the border could potentially pay a higher or lower rate than taxpayers in the rest of the UK.
As part of its work scrutinising the 2016-17 budget, the Finance Committee will consider what the extra cash raised could be spent on if the SRIT is higher than 10p.
They will also look at how any reduction in the SRIT could be funded from the Scottish budget.
Committee convener Kenneth Gibson said: "From next year, revenue from the Scottish rate of income tax will be a significant part of the money spent on Scotland's public services.
"There are key decisions to be made on the level the Scottish rate should be set at and how taxpayers and employers are informed about the introduction of SRIT.''
He added: "It is important for the Finance Committee to scrutinise the introduction of this new power and I would encourage people to submit their views to inform the committee's inquiry.''
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