Ministers have told Dundee Labour MSP Marlyn Glen that councils cannot raise the level of council tax in higher bands while freezing it in others.
Councils have no such power and the proportions between the bands A to H are set out in legislation.
Ms Glen asked if council tax could be raised in higher bands, having obtained figures showing people in the most expensive housing had done best from the council tax freeze in recent years.
The figures show what the city’s council tax would have been across all eight bands had it risen in line with inflation since 2007-8. Those in the top band H are better off to the tune of almost £380 but people living in band A houses only benefited by £125.
For three years the SNP Government has provided an extra £70 million a year to local authorities with the proviso they did not increase council tax. Dundee’s share has been just under £1.8 million a year.
This month the SNP said cash would be found to keep the freeze for two more years, although the second year will depend on the party retaining power at the Holyrood elections in 2011.
Ms Glen said the Government must fully fund a council tax freeze in Dundee. “So far the SNP’s endless council tax freeze has benefited those in the top bands most,” she said.
“The unfairness of the council being forced by the Scottish Government to slash both its spending and its services in return for a small, inadequate sum to impose a council tax freeze must end.”
However, Councillor Willie Sawers, finance spokesman for the city council’s SNP administration, said they were “very confident” of achieving a council tax freeze in Dundee again next year.
He said it was right, at a time of great economic hardship for many people, which they should try to alleviate the financial burden by avoiding a tax rise.
Mr Sawers said Ms Glen’s comments underlined that Labour wanted to abandon the freeze and hike up the council tax. He added that any rise in the council tax was likely to hit those in lower banded houses hardest in proportion to their income.