Wales Asks Taxpayers What to Tax Next

July 5, 2017 Taxation in UK

Taxes in WalesCARDIFF – Wales is looking to stretch its taxation muscle and is seeking ideas from the public about what tax it should try to implement.

The Finance Secretary of Wales Mark Drakeford is calling on national taxpayers to come forward with ideas for new taxes which could be established in the country.

The Minister is said to be seeking an opportunity to test out the country’s newly devolved tax powers by potentially introducing new taxes.

It is expected that in the near future the Minister will put forward some potential taxes as ideas, with a majority of the ideas being those previously raised by the local think-tank the Bevan Foundation.

Potential candidates for new taxes so far include a tax on packaging for takeaways, sugar tax, water tax, a levy on tourism, or an innovation tax credit.

The government expects that any suggestions brought forward by the Minister will be aimed at simultaneously raising new tax revenues, while also positively influencing taxpayer’s behaviour.

However, some taxation experts have warned against implementing new taxes and called on the government to fully and carefully implement the already devolved taxes.

The current tax devolution process represents the first time that Wales has been able to set and collect its own taxes in approximately 800 years.