First Minister Nicola Sturgeon has said the legal requirement to wear face masks in shops and on public transport will end next month.
She had been expected to lift the rule in March, but a rise in cases made her pause.
Addressing MSPs, she said the face mask requirement would be phased out in different stages in April.
She said: "From next Monday 4 April, it will no longer be a legal requirement to wear a face covering in places of worship or while attending a marriage ceremony, a civil partnership registration, or a funeral service or commemorative event.
"And then the wider legal requirement - applying to shops, certain other indoor settings and public transport - will be converted to guidance two weeks later on 18 April.
"We will, of course, continue to encourage the wearing of face coverings in certain indoor places, especially where significant numbers of people are present."
Face covering rules are currently the only legal restrictions still in place in Scotland in the wake of the pandemic.
In her statement, Sturgeon said infection levels are still high, but noted:
"Two weeks ago, there were on average just over 12,400 new cases being reported each day. One week ago,
the average case number was still high, at around 12,000 a day. However, over the past week, it has fallen to 10,200 a day. That is a 15% fall over the last 7 days, and it is fairly consistent across all age groups.
"That gives us grounds for optimism that this latest wave of infection may now have peaked."
Continuing with face masks for another three weeks angered business groups.
Colin Wilkinson, managing director of the Scottish Licensed Trade Association, said:
“The lack of use of face coverings is already clearly evident in many settings and this extension of the restrictions will make little difference.
“To say we are bitterly disappointed by today’s announcement is an understatement as we still face nearly three more weeks of restrictions.
“We had hoped that all restrictions would have been lifted ahead of the Easter weekend when hospitality businesses traditionally see an upsurge in business.”
Dr Liz Cameron, Chief Executive of the Scottish Chambers of Commerce, said:
“Scotland’s businesses want to see the removal of all remaining legal requirements linked to Covid-19. Continuous delays are deeply disappointing.
“Even with the phased approach now announced by the First Minister, Covid rules remain more stringent in Scotland now than in England or Wales and the lack of a four-nations approach is causing concern, particularly its impact on a potentially unequal economic recovery.
“Tourism, for example, will be hit by this decision as the prolonging of Covid-19 rules is likely to make Scotland less attractive than other destinations, just as people are starting to think about booking easter, spring and summer breaks here.”
Scottish Labour deputy leader Jackie Baillie said: “While the government’s cautious approach to masks is understandable, many Scots will be wondering why other parts of the UK which have looser rules on masks are experiencing a lower rate of Covid infection.
“Whilst life is returning to near normality for many that is not the case for those who are immunocompromised and the 180,000 people who were on the shielding list. But there is no detailed plan for testing the immunocompromised and their families and carers, or for making anti-virals more accessible for them.
“It’s all too clear that this government has no idea about how to tackle the spread of Covid in schools.”
Scottish Tory leader Douglas Ross said: “This is now the third date we’ve heard that face mask use will no longer be mandated by law – yet the First Minister still wouldn’t guarantee that there will be no further extensions.
“We can’t go on like this. We must learn to live with Covid like other countries in the UK and across Europe.”
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