Edinburgh: The Hamza Yusuf government has announced a 45% tax on those earning between £75,000 and £1,25,140 in Scotland, one of the UK's member states. The Scottish government has announced that it will charge more income tax from high income earners. That means they will have to pay much more income tax than they currently pay. The top rate of tax paid by those earning more than £125,000 will rise from 47% to 48%.

 The Scottish Government estimates that 114,000 people on annual incomes between £75,000 and £125,000 will pay the new rate of tax. And 40,000 people will have to pay the higher rate of tax imposed on those earning more than £125,000. Those earning over £100,000 pay £3,346 more in tax in Scotland than taxpayers in other parts of the country. Earnings above £28,850 still pay higher taxes than the rest of Britain.


 The announcements were made by Deputy First Minister and Finance Secretary Shona Robinson as she presented the first Scottish Budget. The rates for Starter, Basic, Intermediate and Higher bands have been fixed at 19%, 20%, 21% and 42% respectively. Apart from this, the basic and intermediate bands starting rates have been increased in line with inflation.