Jersey Considering Tax To Fund Environmental Initiatives

by Robert Lee, Tax-News.com, London

01 September 2009

The Jersey government has published the results of a consultation with Islanders on whether government funding for environmental initiatives such as recycling and home insulation should continue, and if so, how such plans would be funded.

Last year the States agreed upon a budget of GBP2m for environmental schemes in 2009. Members agreed that the budget should expire at the end of 2009, or be extended and funded by environmental taxes.

According to the Jersey government, responses with regard to whether environmental levies should be put in place were divided. While some respondents felt a tax should be put in place to allow the environmental initiatives, others felt that taxes should not be further increased.

Respondents were also divided about whether an environmental tax should take the form of Vehicle Emissions Duty (VED), an increase in fuel duty or a combination of both. However, support was expressed for a VED that increases in equal or increasing amounts as a vehicle’s CO2 emissions increase, as seen in many other jurisdictions.

The results of the consultation will be considered when the Council of Ministers convenes to discuss the issue later in the year.

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