Aggregates Tax Bill to encourage use of recycled materials in
construction.
Details of a proposed Scottish tax aiming to encourage the use of
recycled materials in construction and other industries have been
published.
The proposals form part of the Aggregates Tax and Devolved Taxes
Administration (Scotland) Bill, which has been introduced to
Parliament.
If approved by MSPs, the Scottish Government intends to introduce
the tax from 1 April 2026. It would replace the UK Aggregates
Levy, using powers devolved under the Scotland Act 2016, and
would tax the sale or use of aggregates consisting of freshly
extracted rock, gravel or sand.
The Bill also includes amendments to the Revenue Scotland and Tax
Powers Act 2014 to support the efficient and effective collection
of tax by Revenue Scotland.
Public Finance Minister said:
“The new tax proposals have been developed to support the
Scottish Government’s ambitions for a fair, green and growing
economy, encouraging the use of recycled materials in aggregates
across a range of construction-related activities. The tax would
be administered by Revenue Scotland, allowing for a modern,
effective and Scotland-specific approach.
“In line with our New Deal for Business, this legislation has
been informed by extensive engagement with the aggregates
industry and others, and I am grateful to our advisory group for
their input so far. I look forward to this group’s work
continuing as the Bill progresses through Parliament.”
Background
The Aggregates Tax and
Devolved Taxes Administration (Scotland) Bill
The Scotland Act 2016 provided the Scottish Parliament with the
competence to charge tax on the commercial exploitation of
aggregate in Scotland. The introduction of the Aggregates Tax and
Devolved Taxes Administration (Scotland) Bill delivers a 2023 Programme for
Government commitment.
As with other fully devolved taxes, additional secondary
legislation and operational work by Revenue Scotland will be
required before a new tax would be introduced. The UK Government
will also have to introduce legislation to turn off the
application of the Aggregates Levy in Scotland. The rate of the
Scottish Aggregates Tax will be set as part of the annual
Scottish Budget process.
The Scottish Government has also published a consultation report,
which includes an analysis of responses to an earlier
consultation, an overview of discussion at the advisory group and
a summary of decisions taken in response.
Breaking New Ground -
Developing a Scottish tax to replace the UK Aggregates Levy
Consultation Analysis Report
