A formal proposal, which outlines Wales’s plans to operate its own tax collection system – for the first time in 800 years – has been published.
From April 2018, Welsh ministers will have the responsibility for collecting landfill tax and a replacement for stamp duty in the country, which will be called the Welsh land transaction tax.
The Tax Collection and Management Bill details the plans for a Welsh Revenue Authority (WRA), which will oversee collection and management of taxes as a new authority.
The bill also creates a taxpayers’ charter, highlighting the duty among the nation’s population to pay penalties when necessary, as well as setting out their rights and responsibilities.
While the legislation is the beginning of a devolution of tax powers from central Government in Westminster, and outlines the duties of the WRA, it gives no estimated cost for how much money will be needed to set up the authority.
Reportedly, Westminster will not be providing additional funding for the WRA or its creation.
It is expected that the new Welsh tax authority will work with existing authorities, to ensure there is an efficient transfer of power, according to Finance Minister Jane Hutt.
HM Revenue and Customs will be involved in the collection of the land transaction tax, while Natural Resources Wales will help collect the landfill tax.
