Thank you for the opportunity to open the debate on the Welsh rates of income tax, which will be introduced from 6 April 2019 and will apply to income tax payers living in Wales. Welsh income tax payers are defined as people who live in Wales for most of the year, regardless of where they work. The Wales Act 2014 provides a detailed explanation to address the range of possible situations, including AMs, MPs and MEPs representing constituencies in Wales, who will pay also the Welsh rates of income tax no matter where they live. 

While income tax will be partially devolved to Wales from April, it will remain a UK tax. Her Majesty's Revenue and Customs will continue to administer income tax in Wales and the UK Government will continue to retain full responsibility for income from savings and dividends. The Welsh rates of income tax will apply to income earned from employment or self-employment, taxable benefits and pensions. My officials continue to work with HMRC on the detailed arrangements for the administration of Welsh rates of income tax to ensure a smooth and orderly transition to the new arrangements. 

The rates were first announced in the outline draft budget on 2 October. It's not my intention to raise income tax levels in 2019-20. This will mean that Welsh taxpayers will continue to pay the same income tax as their England and Northern Irish counterparts. This will provide stability for taxpayers during a time of economic uncertainty and ongoing austerity. Together with the block grant, Welsh taxes will fund the vital public services that many in society depend on. From April 2019, around £2 billion of the Welsh budget will be funded by Welsh income tax receipts. This should and will change the nature of our debates about revenues and budgets in the future, and I look forward to these discussions. 

The Assembly is asked today to agree the Welsh rate resolution that will set the Welsh rates of income tax for 2019-20, and I ask Members for their support this afternoon.