Rethink tax rises, says IoD

Thursday 18th January 2007, 12:00AM GMT.

THE States should rethink the ’20% means 20%’ tax increases facing Islanders to avert a self-made savings crisis, says the Institute of Directors.

The chairman of the IoD’s Jersey branch, Simon Radford, has called on ministers to review the strategy because of fears that it will create more problems in the long term than it solves in the short term. The tax changes now taking effect mean that the vast majority of people will be paying more tax, said Mr Radford, who believes that the Island may be better off by phasing the changes in over a longer period. He said: ‘Given increasing life expectancy, we should be saving more to fund our pensions which, for most, will almost certainly be inadequate. While I appreciate the reasons why the changes are needed, emerging already are some serious indicators that there has been little joined-up thinking.

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