A new three percent income tax is proposed as its replacement by Scotland's first minister.
Plans to scrap council tax in Scotland have been announced by first minister and leader of the SNP Alex Salmond.
Under the terms of the reforms, the tax would be replaced by a 3p income levy on all Scots. This, the SNP claimed, would bring 85,000 Scots out of poverty, and could save households as much as £535 a year.
The proposals have been criticised by Labour MSPs, who said that the new tax policy would prove expensive for many households. Acting Scottish Labour leader Cathy Jamieson even suggested that it would make the nation "the highest taxed part of the UK".
Speaking to the Scottish Parliament, Mr Salmond said: "There should be no limits to our ambitions for this nation, just as there should be no limit to what we can contribute globally. I have no doubt Scotland will judge harshly any MSP who votes to keep the council tax in the face of the overwhelming benefit that would flow to millions of ordinary Scots,"
Other upcoming Bills announced by Mr Salmond include plans to prevent under-21s from purchasing alcohol from Scotland's off licences, and new restrictions on tobacco displays in shops.
If passed by parliament, the local income tax would come into effect next year.
