In recent Scottish reports, the burden of the business rates is now falling heavily on the tourism industry of the country.
There are firms in Scotland that are paying at least a fifth of their surplus income on the rates bills. The average business rates bill that is considered as a share of the income of the establishment is almost four times than the wider private business segment.
An analysis was made by the Scottish Parliament Information Center and showed that there was a wide variation in the different sectors. The figures will help in making a case to reform the non-domestic rates system which is expected to raise about 2 billion pounds within the year in Scotland. This certain regulation has been currently reviewed in England and has faced mounts of criticisms from the business sector in Scotland. The tax burden has become overwhelmingly dismaying to the various business owners.
The non-domestic tax rates are levied by Scottish politicians. The regulation states that the rates are at a fixed level across the country and is multiplied by the valuation. The valuation of establishments is assessed independently and is usually based on the rental value of the factories, shops, offices and other commercial establishments.
The pattern that has emerged from this strategy according to the analysis of the Scottish Parliament Information Center is that in the rich and prosperous pars of Scotland, the businesses are faced with a lower tax burden rate. Seeing this from another light, the basis of the non-domestic rates charged in Scotland is purely not reflective of the economic difficulties of the people. The regions in Scotland that faced the lowest tax burden when it was compared with the added value included Moray. Moray is where the whisky industry resides and which generates undoubtedly large profits.
Plenty of business establishment owners have voiced their concern over this unfair system. Even the cottage industry is affected. With the increasing number of visitors of the country, the luxury self catering aviemore and similar services in the hospitality industry are doing well. But the tax burden which is now being debated in government has also affected the businesses in the industry.