Developing a Scottish tax to replace the UK Aggregates Levy

Closed 5 Dec 2022

Opened 26 Sep 2022

Results updated 15 Nov 2023


Published responses

View submitted responses where consent has been given to publish the response.


Aggregates make an important contribution to Scotland’s economy, providing materials for housing, construction, road-building and other uses, and supporting employment, including in rural and remote areas of the country. Aggregates are also required as construction materials to support the ambitions for the environment, including for diversification of the energy mix. They are used both in and of themselves and mixed with other materials to produce new products used in construction such as mortar, tarmac and concrete.

The Scotland Act 2016 provides the Scottish Parliament with the power to introduce a devolved tax on the commercial exploitation of aggregates in Scotland, to replace the UK Aggregates Levy. This followed the Smith Commission, which recommended that the power to implement such a tax be devolved once litigation then underway in relation to the UK levy had been resolved, which was confirmed in early 2019.

The UK levy applies, in general terms, to the commercial exploitation of primary aggregates – in essence, crushed rock, gravel and sand – which are used for bulk fill in construction related activities. It has been in place since 2002 and was recently reviewed by the UK Government.

This consultation seeks views on how a Scottish replacement to the UK levy should be structured and operate. Responses to this consultation and associated engagement will support the development of a Bill that will set out the key arrangements for a devolved tax.

Read the consultation paper 

Why your views matter

This will be a distinctive Scottish tax, including in arrangements for its collection and management by Revenue Scotland.

This consultation provides an opportunity to ensure that a future tax is well-designed, takes full account of the Scottish context and maximises the opportunities offered by devolution.

In particular, we want to ensure that a future tax is aligned with the Scottish Government’s ambitions for the circular economy, and takes full account of the Scottish Approach to Taxation.

We want to hear from as wide a variety of individuals and organisations as possible, in particular but not limited to those involved or with an interest in the aggregates business, construction and infrastructure, environmental, tax accountancy and legal sectors.


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