"The Federation believes that the introduction of any kind of service tax or local income tax in Scotland would be problem-atic and result in additional costs for employers who would be expected to provide local authorities with information on staff salaries."
That argument still applies, said a spokesman, who pointed out the particular concern businesses had where employees could travel in to work from difference council areas all levying different LIT rates. "That bureaucracy would be time consuming and costly, so our members would prefer a flat rate across Scotland," he said.
Iain McMillan of CBI Scotland said they had several concerns, including the whole perception of Scotland as a place with higher income tax, the fact that the 3p would apply not just to the basic rate but up through the bands, and the impact on organisations whose payrolls were on both sides of the border.
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