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Developing new taxes in Wales

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The Welsh Government will propose a vacant land tax to the UK government to test the Wales Act 2014 powers.

In October 2017, the Cabinet Secretary for Finance announced 4 tax ideas that the Welsh Government would develop further in the coming months: a social care levy, a vacant land tax, a disposable plastics tax, and a tourism tax.

While vacant land tax proposal has been prioritised to test the Wales Act powers, work will continue, at varying levels, on the remaining 3.

A poll about the shortlisted ideas for a new Welsh tax was made available via social media by the Welsh Government between 6 November 2017 and 5 December 2017. The outcome of the poll is available below.

Source: doopoll

New tax ideas

Vacant land tax

In Wales we need more housing. Sometimes, land identified as suitable for building is not built on, or is not built on as quickly as needed. This idea will explore whether a new tax to increase the cost of holding vacant land could encourage the building of new homes.

The Welsh Government will take this idea forward to test the Wales Act 2014 new tax powers.

Social care levy

Wales has a growing number of older people. We need to consider new ways to cover the cost of the increased demand for social care.

This idea will explore various options for how we can use a small amount of the money we earn while we are working, to contribute towards paying for the care that we may need later in life.

Further work will be undertaken to see if taxation could help fund social care in Wales in the long term.

Disposable plastic tax

We all know the things we use everyday can effect the world we live in. Small changes can have a big impact on our behaviour and our environment.

This idea considers if an appropriate tax could change behaviour towards disposable plastic and a range of options will be explored.

The Welsh Government will work with the UK Government on its call for evidence about single-use plastics. We also continue to explore a Welsh tax.

Tourism tax

Wales is a popular tourist destination. This tax idea explores how a small contribution from those visiting could help sustain services which are important to both visitors and the local community. The tax raised could be used to pay for things which make places attractive such as tidy beaches, extra street cleaning and well maintained public toilets.

Further longer-term work will be undertaken to explore a local tourism tax.