ONE in five homeowners could see their council tax bills soar by £500 if house valuations were updated, an expert warned.
David Phillips, of the Institute for Fiscal Studies, branded the levy “a relic” — as charges are based on 1991 property prices.
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With the Scottish Government vowing to make the system “fairer”, the economics think-tank called for a nationwide revaluation of pads.
They admitted this could produce winners and losers — as around half of homes are in the “wrong band”.
Mr Phillips, associate director at the IFS, said: “Council tax in Scotland is a relic of the 20th century.
“At a bare minimum, reform should consist of a revaluation. We wouldn’t tax people’s incomes based on the relative salaries their jobs paid 34 years ago but we still do that with property prices.
“Folk living in homes now worth the same amount can face bills that differ by hundreds of pounds. That’s unfair and should change.”
The IFS calculated revaluation would hit 18 per cent of Scots with tax rises between £50 to £500.
A further three per cent of households, around 75,000, would face even bigger hikes.
But 17 per cent would see bills go down by £50-£500, with three per cent benefitting from larger cuts.
Nats ministers this week started a consultation on reform of council tax — which then-First Minister Alex Salmond pledged in 2007 to axe.
But Scots Tory finance spokesman Craig Hoy insisted: “Experience tells us that when the SNP mess about with any tax, it inevitably results in the majority of Scots being clobbered for more of their hard-earned cash.”
And Labour’s Mark Griffin hit out: “It has been almost 18 years since the SNP pledged to scrap council tax but this chaotic government still has no plan.”
Scots Lib Dem economy spokesman Willie Rennie said: “Until the SNP are willing to say what alternative system would be acceptable to them, the current unfair and badly designed system is here to stay.
“Local authority finances are a complete mess but no one should give a single second to SNP promises to do anything different.”
A nationwide freeze on council tax bills imposed two years ago by then- FM Humza Yousaf was scrapped in December by Finance Secretary Shona Robison — paving the way for double-digit hikes across Scotland.
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Last night Ms Robison said: “We want to examine ways to make the tax fairer and build a consensus on financially sustainable options.”
What council tax hike can you expect? See our interactive map for details.
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