The leader of the Scottish Liberal Democrats has called for a “radical reshaping” of tax in Scotland.
Willie Rennie has pledged to use new powers to create a “zero-rate” tax band – effectively increasing the levy-free personal allowance north of the border.
The mid-Scotland and Fife MSP claims the move would “cut the amount people on low and middle incomes pay” to the government each month.
Mr Rennie’s comments at the David Hume Institute follow calls from his party and Scottish Labour for a 1p increase in income tax.
Both parties were defeated in their bid to raise the rates by the Scottish Conservatives and the SNP, who claimed any increase would hit low paid workers.
Mr Rennie said: “I am setting the principle and committing the Scottish Liberal Democrats to a new zero-rate band of Scottish income tax. This will be in additional to the personal allowance still to be set by Westminster.
“Tax cuts for the wealthy and secret taxes and charges for everyone else from the Conservatives. And inaction from the SNP.
“That is in contrast now with the Scottish Liberal Democrats. Investing in education is our top priority.
“And as our investment in education delivers economic benefits and increased tax revenues, we will use those revenues to set the zero-rate band, cutting the amount people on low and middle incomes pay.
“When resources allow they should be used for a Scottish zero-rate band, not for tax cuts for the very richest.
“What I have set out, for the first time, is a radical reshaping of our tax arrangements. Setting the right, solid foundations from the beginning of Scotland’s new tax system.”