One of our Trainee Solicitor's, Andrew Rees, discusses the potential new taxes for Wales.
This autumn, the Welsh Government will consider a shortlist of new taxes for Wales. With this is mind, Finance Secretary Mark Drakeford has kick-started a national debate by asking the public to put forward their suggestions.
The Wales Act 2014 provides the Welsh Government with powers to put forward proposals for the development of new taxes in areas of devolved responsibility. These proposals must be agreed by the National Assembly, UK Government and both the House of Commons and the House of Lords. The Welsh Government already has powers over stamp duty and landfill tax from 2018, with powers over income tax arriving in 2019.
Mr Drakeford has already received emails from the public and businesses with their ideas as well as suggestions put forward by Valleys think tank, the Bevan Foundation. Such ideas have included:
- Takeaway packaging tax
- Sunbed tax
- Sugar tax
- Water tax
- Tourism Levy
- Innovation Tax Credits
- Workforce Development Levy
- Land Value Tax
Mr Drakeford has told AMs that "the power to propose new taxes is an important lever, which we can use to change behaviours and deliver improvements for our communities...that is why I want to start a genuine debate about how we use these powers to support our commitment to fairness, well being and growth“.
It will be interesting to see what ideas the Finance Secretary decides to push forward after the summer recess. Watch this space for further updates!
For more information on Welsh law, please see here.
The public is being asked for ideas on what potential new taxes should be introduced in Wales. Finance Secretary Mark Drakeford said he wanted to "kick-start a national debate" on new taxation and was keen to hear from the public and businesses. The Welsh Government already has powers over stamp duty and landfill tax from 2018, and income tax from 2019. AMs have discussed new ideas for other taxes and ministers will consider a shortlist in the autumn.