Retail businesses would bear the brunt of the revenue-raising measures as Treasury Minister Alan Maclean seeks approval to tax retail firms earning over £500,000 profit in the Island, which could raise £5.7 million.
Retailers making more than £750,000 will be taxed at a maximum of 20 per cent, with those falling within the £500,000 to £750,000 band set to be taxed on a sliding scale, if the proposals are approved.
And more businesses would fall into the ten per cent band of the Island’s zero-ten corporation tax regime as proposals to redefine what is meant by a financial services company were tabled for approval in a move which is hoped would bring in an additional £3 million.
Meanwhile, married couples would receive an extra £850 of their income tax free – a move which could save 12,000 households an additional £221 on average each year.
Spending plans for £58 million to be invested in the Island’s public services are also outlined in the Budget, which will be debated next month.
The proposed impôts increases in the budget are:
- Unleaded petrol/diesel: 2.5 per cent increase, the equivalent of 0.1p per litre.
- Pint of normal strength beer/cider: 2.5 per cent increase
- Bottle of table wine: 2.5 per cent increase
- Litre of spirits: 2.5 per cent increase
- Packet of 20 king-size cigarettes: 7.5 per cent increase
- 50 grams of hand-rolling tobacco: 10 per cent increase