It can vary Scottish tax +/-3% of the levels set in Westminster. Why has it never used this power? A Scottish government can give Scotland a tax cut, or raise more revenue in the face of Westminster spending cuts.
Because they recognise that it won't go down well with the rest of the country if they decrease tax for Scotland, and know it won't go down well with the Scottish if they increase it.
Also, now especially, Scotland has a lot more to spend money on, such as free university education, and so a tax cut would not really be the best of ideas, especially now. Increasing tax as we are coming out of a recession and people are already struggling will never get support, so even if they are planning on doing this, no party in Scotland will admit to it during the election.
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