A council tax revaluation for homes in Scotland is urgently needed for child poverty targets to be met, an advisory commission has said.
The Poverty and Inequality Commission says it is one of a series of measures needed by the Scottish Government to improve the tax system.
But it has warned that SNP ministers have lacked "political will" to bring forward long-promised revaluation plans for council tax.
The commission was set up in 2017 by the Child Poverty (Scotland) Act to advise the Scottish Government on measures to improve the lives of the worst off in the country and close the gap between the richest and poorest.
Read more: Scottish Government council tax proposals 'pointless', says thinktank
In a new report, it recommended bringing wealth as well as income into the scope of taxation, as part of a long-term solution to putting public finances on a sustainable footing.
SNP ministers have consulted on whether to raise the relative tax bill on Band E to H homes by between 7.5% and 22.5% next year to raise £175m, a move which also happened in 2017.
But thinktank Reform Scotland has branded the proposals mere “tinkering” and “effectively pointless”.
Currently, council tax is based on property values from 1991 and critics say it has a regressive effect, leading to poorer people paying more.
Despite being recommended in 2016 by the Commission on Local Tax Reform, and a vow in the SNP’s 2021 Holyrood manifesto for a Citizens’ Assembly on overhaul of the local government finance system, revaluation has been dodged by the Scottish Government.
Read more: Scottish Government 'ducking' key council tax reform, warns IFS
The devaluation strategy has been supported by Scottish Labour, the Scottish Greens and the Scottish LibDems.
The commission’s report praised the “progressive” Scottish income tax system, which has separate bands to the rest of the UK.
However, commissioner Alex Cobham said further action on tax is needed if ambitious targets on reducing poverty by 2030 are to be met.
Mr Cobham, an economist who is also chief executive of the Tax Justice Network, said: “There’s no question that this is technically the right thing to do.
“What’s been lacking is the political will.
“I think we’re at a point now where if the Scottish Government were to decide not to do this, because it is politically difficult, because it is sensitive, they’re effectively deciding to miss their own child poverty targets. It’s become that clear.”
He said it is important to start this process in the upcoming Scottish Budget, as well as ensuring those on lower incomes do not suffer as a result.
Mr Cobham said: “It is more than feasible, I think it’s necessary.
Read more: Robison says 'no decision' on council tax hike proposed by ministers
“If the Government is serious about getting back on track with its child poverty targets, there is no time to wait.”
The report says the Government should ensure all land and property is properly registered, and work on a replacement for council tax should start immediately.
Ahead of the next Scottish Budget, First Minister Humza Yousaf has said “difficult decisions” on tax will need to be made.
Responding to the commission’s recommendations, SNP Deputy First Minister, Shona Robison, said: “I welcome this report, which recognises our progressive approach to taxation.
“This approach has protected lower earners while raising revenue to invest in our public services.
“It has also helped strengthen our social contract with every citizen in Scotland, including free prescriptions, free access to higher education and the Scottish Child Payment.
“A decade of austerity, economic mismanagement by the UK Government, and a hard Brexit have all contributed to one of the most challenging financial situations since devolution.
“The medium-term financial strategy set out our plans for managing these challenges, doing all we can within our limited powers to ensure public finances are on a sustainable path.
“We will respond fully to the commission’s recommendations in due course.”
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