The Confederation of British Industry (CBI) has expressed concern about plans to introduce a new retail business tax in Scotland, claiming it could deter large-scale investment.
Holyrood ministers say the levy - intended to offset the public health impact of alcohol and tobacco sales - will raise £110m over the next four years. While the Edinburgh government insisted the tax would affect only a “small number” of major chains, larger retailers already pay a 0.7p supplement on top of business rates as part of the Small Business Bonus Scheme.
“This latest revelation demonstrates the Scottish government's determination to reap as much revenue as possible from the tax rises on businesses which it unveiled last month,” said CBI Scotland assistant director David Lonsdale. “We are deeply concerned that the tax rises being planned will make it more expensive to invest in Scotland.”
However, a spokesman for the Scottish government played down the industry body’s fears about the new tax and insisted Westminster cutbacks had had a “significant” effect on public spending north of the border.
Last week, data from the British Retail Consortium and KPMG revealed that September’s Scottish retail sales were up by 0.8 per cent on the same point in 2010.
