5. Statement by the Minister for Finance and Trefnydd: Progress on Devolved Taxes

Part of the debate – in the Senedd at 4:53 pm on 2 February 2021.

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Photo of Mike Hedges Mike Hedges Labour 4:53, 2 February 2021

When I think of tax, I think of the children's story where someone is told, 'You have a great power; be careful how you use it.' The Minister refers to the new taxes—the land transaction tax, the landfill disposals tax and the Welsh rates of income tax—which have been added to council tax and business rates. Taxation needs to be progressive, with those with the most money and ability to pay paying the most. So, loopholes need to be removed.

Tax exists to pay for public services—the public services that we all need. I would like to ask the Minister for an update on progress regarding a plastics tax. If we don't have a plastics tax, we will not deal with plastic pollution. Every one of us has seen more and more items that used to come in glass now coming in plastic. The most recent one that surprised me most was vinegar.

Also, a tourism tax. This is common throughout the world. It certainly deserves investigation. As someone who paid £135 per room for a night in a budget hotel chain, I do not see how it would affect affordability. Places like New York have a tourism tax. It's hardly looked at as a Marxist stronghold.

Can I also say that council tax needs more bands? It needs more at the bottom and more at the top. Band B starts far too high, and the top band ends where there is room for at least three, and possibly another four, bands. I keep going on about this, but for it to be fair, somebody in a £5 million house should not be paying the same as somebody in a £0.5 million one.