Tax stories from all four home nations and Denmark this week.

I will though start with some facts and figures.  It was reported this week that the average pensioner household paid £5,124 in tax over the past year.  That means the average UK pensioner household pays out 27% of its income to HMRC.  That is a combination of direct and indirect taxes which add up to an annual tax bill of more than £34 billion.   Further evidence of how large a contribution this age group contributes to national and local government finances.

Now to Wales and the Welsh Government’s introduction of a plastic bag tax.   Anyone who wants a plastic container to carry their shopping in will need to pay a 5p levy for the privilege.  They will also need to pay for plastic packaging for fast food items.

Staying with fast food but moving to Denmark.  Denmark has introduced what is believed to be the world’s first “fat tax”.  They have introduced a surcharge on foods that are high in saturated fat.  Butter, milk, cheese, pizza, meat, oil and processed food are now subject to the tax if they contain more than 2.3% saturated fat.  The UK Government are also considering such a tax the Scottish Government are not.  The  Scottish Government plans to work with manufacturers instead.

Now to Edinburgh and the latest local politician to suggest a tax change.   This time it is Colin Keir SNP MSP for Edinburgh Western.  His idea is to cut VAT rates for the tourism and golf services industry and as presently happens in Ireland.

There were this week a number of interesting announcements on additional tax powers for the Scottish Parliament.  The Scottish Government has called for the revenue from alcohol duty to be devolved to Scotland.  That makes sense when you consider that health is already devolved.  What though of tobacco duty?  Also why is the Scottish Government simply asking for this revenue to be assigned to it but not the power to vary duty rates or control over the underlying law?  I suspect that this “request” will receive the same reaction from the UK Government as the call for control of corporation tax and the Crown Estate.

More interesting was the call from a group of newly elected Tory MPs for the Scottish Parliament to have full tax raising powers in a book billed as the way forward for the Conservative Party.

Mixed news for Northern Ireland on fiscal powers this week.  Looks as if it will be given some Air Passenger Duty powers but that the devolving of some restricted powers over corporation tax will be at best delayed.

Few surprises at the Tory conference.   George Osborne confirms the English Council tax freeze and that there will be no temporary tax cuts.  This almost certainly means no change to the 50p rate of income tax or VAT.   The Tories also confirmed their opposition to a European Union financial transactions tax.  Iain Duncan Smith did though go off message when he called for breaks for the poor and married couples.