DETAILS of a proposed Scottish tax aiming to encourage the use of recycled materials in construction and other industries has been published.
The proposals form part of the aggregates tax and devolved taxes administration (Scotland) bill, which has been introduced to parliament.
If approved, the Scottish Government said it intends to introduce the tax from 1 April 2026, with it replacing the UK aggregates levy. Using powers devolved under the Scotland Act 2016, it would tax the sale or use of aggregates consisting of freshly extracted rock, gravel, or sand.
The bill also includes amendments to the revenue Scotland and tax powers Act 2014 to support the efficient and effective collection of tax by Revenue Scotland.
Public finance minister Tom Arthur said, “The new tax proposals have been developed to support the Scottish Government’s ambitions for a fair, green and growing economy, encouraging the use of recycled materials in aggregates across a range of construction-related activities. The tax would be administered by Revenue Scotland, allowing for a modern, effective and Scotland-specific approach.
“In line with our new deal for business, this legislation has been informed by extensive engagement with the aggregates industry and others, and I am grateful to our advisory group for their input so far. I look forward to this group’s work continuing as the bill progresses through parliament.”
