There have been reports by numerous Scottish business owners regarding the unfair tax burden levied upon their businesses. The government conducted a thorough research and analyzed the data carefully. They were able to substantiate the claim of many petitioning owners in that in places where there are huge profiting businesses and industries like in the Falkirk area where there are petro chemical plants and other industries in the oil and gas sector, the tax burden is quite low.
The data gathered looked at the greater picture of two sectors- hospitality and manufacturing. It showed that the food sector and accommodation sector carried the biggest burden. The analysis of the tourism industry found at that Edinburgh, Dumfries and Galloway, Renfrewshire and West Lothian carried the highest tax burden as relative to the surplus earnings of the places which are more than 22 percent.
The winners and losers
Although the business rates are being paid by non-profit organizations and by the government, these were actually not included in the analysis. The average business rates bill for tourism in the Scottish council areas is reportedly near 15 percent. The private businesses as a whole, not including the finance sector had business rates of about 4 percent of their surplus income. This is according to the figures supplies by Holyrood.
The other areas where the tourism sector had to pay the most were South Ayershire, Glasgow, East Lothian, Clackmannanshire, Falkirk, Western Isles and Midlothian. Aberdeen and Aberdeenshire experience higher surpluses and profits recently and they were among those with relatively low burden.
What does the Scottish government had to say? The government said that it had the most competitive tax reform anywhere in the United Kingdom which included a package of tax relief that is estimated to be worth than 600 million pounds this year. The Small Business Bonus Scheme is likewise estimated to remove or reduce the rates bill significantly.
Though the hospitality industry has also been greatly affected with this tax scheme, owner of establishments like luxury cottages Aviemore are still thankful that there is a relief coming from the government.