The document adds: “ With the devolution of National Insurance, we could ensure rates and thresholds fit our progressive income tax rates.

“With the full devolution of tax powers, we would crack down on tax avoidance and evasion and improve the transparency of tax paid by international companies to ensure that they make a proportionate contribution to tax revenues.”

Holyrood already sets Scotland’s income tax bands.

But experts at the Chartered Institute of Taxation (CIOT), have warned that different rates of National Insurance for different parts of the UK could cause complications and added costs.