Scotland is to gain a new body to collect and administer taxes when it gains new revenue-raising powers in 2015.
Revenue Scotland will be responsible for the Scottish versions of stamp duty and landfill tax when they are handed over to Holyrood under the terms of the Scotland Act.
Revenues collected on a UK-wide basis such as Income Tax will continue to be administered from London.
Finance secretary John Swinney predicted that Revenue Scotland would be at least 25 per cent cheaper to operate than HM Revenue and Customs.
He said: "Through Revenue Scotland we will serve the needs of the people of Scotland at a lower cost than the UK set-up and we will deliver a better system more in line with Scotland's needs."
The cost for HMRC to administer the existing charges on behalf of the Scottish Government up to the end of March 2020 would be around £22.2 million, while the projected cost of the new system is just over £16.7 million.
"It is a sign of the costliness of HMRC that we will both establish Revenue Scotland and implement and collect both of the replacement taxes for less than HMRC would charge us to deliver what they term a like-for-like system with the UK," Mr Swinney said.
"I estimate that over the period to 2020, start-up and operational costs in pursuing this approach will be at least 25% lower than if I ask HMRC to deliver the status quo."
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