Jersey Treasury Discloses 2009 Budget
Jersey is well-placed to deal with the impact of turbulent international
financial markets, and despite the recently agreed spending increases, the Island’s financial position is still balanced and healthy over the forecast period,
according to the Treasury and Resources Minister, Terry Le Sueur. Le Sueur's budget proposals for 2009 focus on three main areas; income tax,
import duty and stamp duty. The minister plans to increase tax exemption thresholds by 5% for 2009, extending
the range of incentives to save for retirement, including raising the level
of pension contributions eligible for tax relief and recognising employer contributions
in personal pension products. He also plans to extend childcare tax relief
to cover the employment of Jersey Child Care Trust accredited childminders. The government plans to defer any increases in fuel duty on all road fuel for
2009. Import duties on alcohol will increase by 5.6% and duties on tobacco by
6%. The plans include the removal of all stamp duty for first-time buyers on property purchases at values of up to
GBP300,000. The treasurer plans to increase the existing band at which first-time
buyers receive a discount on their stamp duty from GBP300,000 to GBP400,000.
The budget will also lead to the introduction of a new Land Transactions Tax
for residential property share transfer transactions in 2009. Commenting on the 2009 budget proposals, Senator Terry Le Sueur said: “Despite
the increases in spending agreed following the amendments to the business plan
our financial position is still balanced and healthy over the forecast period.
Our policies have been successful in encouraging further real economic growth
in 2007 which in turn has boosted tax revenues.” The minister has also announced further areas where reviews and consultations
are needed during 2009, which included a new environmental tax
to provide funding to support long-term environmental spending initiatives. The minister also intends to conduct a further review of stamp duty to
consider a possible increase in the bands of stamp duty for higher value properties. The Minister has accepted a recommendation by the Fiscal Policy Panel advising
against any further transfers to the Stabilisation Fund at this stage, in recognition
of the possibility that lower rates of economic growth will reduce tax revenues
and increase public spending. The States will debate the Treasury Minister’s proposals on December
2, 2008. .
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