Politicians To Debate Income Tax Reforms

Monday, 19 November 2018 12:15

Two thirds of islanders could be paying less Income Tax from 2020.

That’s according to Reform Jersey, which has lodged an amendment to next year’s Budget promising to make taxes simpler and fairer.

In May’s General Election, Jersey’s only political party pledged to move to one tax calculation, reduce the marginal rate and allow all taxpayers to claim allowances.

Their Chairman, Senator Sam Mezec, has lodged an amendment which would see the current ’20 means 20′ tax rate calculation scrapped.

If States Members back the plans, the top 5% of earners would pay more and two thirds of islanders taxed less.

Senator Mezec says it would generate an extra £7.5 million every year, as well as reducing strain on middle earners:

“During the election, we pledged that if our members were elected, we would aim to make the Income Tax system simpler and fairer to reduce inequality. We believe the States needs to take action to deliver on our commitment to improving the standard of living for Islanders, and hope that members will be persuaded by our proposal to put more money in the pockets of ordinary Islanders, whilst asking those who have the broadest shoulders to carry more of the burden.

“Our proposals have been independently verified by the Treasury Department, who have confirmed that this would raise an extra £7.5m in revenue per year, which we would want to see invested back in our public services.”

Politicians will debate the proposals during the States sitting on December 4th.