SNPKate Forbes has warned that people could move out of the country if the Scottish Government hikes taxes again.
The Scottish Government has previously committed to “progressive taxation”, with last year’s budget increasing income tax on the highest earners and creating a new band for those earning between £75,000 and £125,140.
But speaking at an event at the SNP conference on Friday, organised by the Child Poverty Action Group Scotland, the deputy first minister warned of the dangers of further tax rises.
Responding to a staff member from Oxfam Scotland, Forbes said she had to “guarantee income” for the Government.
“The nature of tax policy in a devolved context, you just can’t get away from the reality, it’s very easy to move – it just is very easy to move.
“We have to take into account the behavioural impact also.”
The same is not true of independent nations, the economy secretary added.
“You set tax policy at the beginning of the year, if people move, then you don’t get the money in and what you end up doing is you pay the UK Government money and it’s all very unpleasant and we have less money,” she said.
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