Financial Secretary, Derek Mackay was warned against setting up of income tax bands at a “substantially” different rate what is prevailing in the rest of the UK, the information has been revealed now.
Chief economist of Scotland, Gary Gillespie exposed his advice, which was informed by the council of economic advisers of the government.
It is thought that the budget of Mackay will introduce different rates of income tax in Scotland for the first time after devolution, with Scottish Greens and Labor urges a hike in tax for those who earn more.
Gillespie has revealed a report into the possible impact of raising the Additional Rate of Income Tax (ARIT) in Scotland, which looked at the likelihood of raising the top rate from 45p to 50p.
It warned that there is likely to be substantial revenue and policy risk allied with any considerable divergence from the equivalent rate in the rest part of the UK” but also add that smallest changes could positively impact the whole thing.
Gillespie said: “The analysis reveals that Additional Rate taxpayers incline to have more chances and to be more mobile to reduce their tax bill in comparison to those who are on lower incomes.”