Jersey Government To Re-Examine PAYE Proposals

by Robert Lee, Tax-News.com, London

17 September 2002

Jersey's Finance and Economics Committee is set to publish a consultation paper soon after the budget on the possibility of introducing Pay As You Earn (PAYE) taxation, according to the Jersey Evening Post.

Reporting on a meeting which took place last week between Finance and Economics President, Frank Walker and the local business community, the newspaper revealed that Comptroller of Income Tax, Malcolm Campbell has been asked to prepare a report on the feasibility of such a system for release in December.

However, the Committee chief stressed that PAYE is just one of the options under consideration. Speaking with regard to other proposals backed by the Committee, which include a tax on fringe benefits, an overhaul of the stamp duty regime, and a new tax on vehicle registration, Senator Walker expressed the hope that they would go some way towards bridging the States funding gap.

He acknowledged that: 'These are short-term proposals and quite frankly I'm disappointed that we cannot talk about a longer-term fiscal strategy,' but added: 'Unfortunately, owing to uncertainty over international initiatives such as the EU savings tax directive, it is not possible today.'

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