The 2010 Budget – Treasury Minister Philip Ozouf’s first – recommends duty rises of almost 10% on tobacco and fuel, and future rises to UK levels over the next four years on cigarettes and alcohol. And it proposes freezing tax allowances, which will pull more low earners into the tax net.
The duty increases proposed are:
• Fuel up 9.8%, raising £1.5m.
• Tobacco up 9.7%, raising £900,000.
• Alcohol up 6.2%, raising £700,000.
Other proposals include removing a tax exemption for UK pension funds that could raise around £3m for the taxman.
‘There is no doubt that Jersey is in recession and we expect that to continue for a number of months,’ said Senator Ozouf. ‘While we are in a strong position we should not be complacent.
‘The Budget does propose that, responding to the concerns of the Health and Home Affairs ministers, additional money for Health should be funded by increases in duty on alcohol and tobacco. There will be a discussion on bringing those to the level of the UK over the next three or four years.’