THE States yesterday gave a clear mandate to proposals to reform Jersey’s future tax structure by supporting a range of measures put forward by the Finance and Economics Committee.
They included introducing a ‘zero-ten’ per cent corporate tax structure from 2008 in order to protect the competitiveness of the Island’s financial services industry.
This is the first major step in tax reform.
However, it will lead to an £80m to £100m ‘hole’ in future government revenues.
How to fill that hole will be decided next February, when Finance and Economics take detailed plans for the introduction of a goods and services tax and other taxes to the States for debate.
A pleased Finance and Economics Committee president Senator Terry Le Sueur said: ‘It is a clear steer for the way ahead.
There is still a tremendous amount of work to do, but as we had the strategic plan last week and we have the resource plan to come, there will be a clear policy framework for the States to work to in future.’ Members voted by an overwhelming 38-4 to accept proposals to introduce a zero per cent corporate tax rate in 2008.
In a second vote, won by 34-8, they accepted the remainder of the package put forward by Finance.
These measures include setting limits on States spending at one per cent below inflation from 2005 to 2009 and approving a two per cent economic growth target throughout those years.
Article posted on 8th July, 2004 - 12.00am
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