May 24, 2024 1:00 am
Minister refuses to implement immediate business tax increase in Jersey

Jersey’s Treasury Minister Elaine Millar recently stated that there are no immediate plans to increase business taxes in Jersey. The standard rate of company tax in Jersey is 0%, with finance firms paying 10% under the ‘zero/ten’ system. The government collects taxes on income and goods and services, but does not collect capital gains or inheritance tax.

Minister Millar emphasized the importance of maintaining competitiveness in the finance center and stated that no additional taxes, including business taxes, are currently being considered. She highlighted that Jersey residents pay significantly less income tax compared to those in the UK. The 5% GST charged on goods and services in Jersey is lower than the 20% VAT in the UK.

However, Deputy Jonathan Renouf suggested that Jersey should consider broadening its tax base beyond just income tax and taxes on spending to reduce the burden on individuals. He emphasized that a balanced tax system is essential for sustainable economic growth and development.

Overall, the government of Jersey is cautious about introducing new taxes that could impact the competitiveness of the finance center but acknowledges the need for a balanced tax system that does not put undue pressure on individuals.

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