Wales could introduce its own Income Tax rates from April 2019 as part of a deal with the UK Treasury.
The deal would also include a £1 billion grant for capital spending – a big boost to Welsh building and infrastructure.
The proposed income tax powers would allow ministers to cut or raise rates by 10p within each tax band, and will no longer require a referendum.
While the deal may prove to be a logistical nightmare for workers operating across British, Scottish and Welsh jurisdictions, it has been welcomed positively by MPs.
Finance Secretary, Mark Drakeford, said agreement on the fiscal framework guaranteed “fair funding” for Wales.
“I am pleased we have been able to reach agreement about a new fiscal framework which puts our funding on a stable and long-term footing,” he said, as the deal was announced on Monday.
“This is an agreement which is fair to Wales and the rest of the UK.”
The Welsh Government has recently been granted powers over Stamp Duty Land Tax (SDLT) with the introduction of the new Land Transaction Tax (LTT).
It is also responsible for settings its own business rates and council tax.