Wales should determine its own income tax, according to a new report from the cross-party Silk Commission.

The Empowerment and Responsibility: Financial Powers to Strengthen Wales report recommends major powers governing taxation be devolved to Cardiff, including control over the level of income tax, suggesting a referendum to decide on this measure.

Other controls for Wales recommended are levies such as air passenger duty and stamp duty, though the report stops short of recommending devolution of corporation tax powers.

Commission chairman Paul Silk commented: ‘Our proposals would provide the Welsh government with an important set of fiscal levers and would enable political parties to offer people real fiscal choices. What we are recommending is significant and historic.’

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