Manx CoC Praises Budget Tax Strategy, Expresses Concern Over Spending

by Jason Gorringe, Tax-News.com, London

04 March 2003

Speaking to the Isle of Man Online news service, Manx Chamber of Commerce chairman, Mike Henthorn welcomed the tax measures contained within Treasury Minister, Allan Bell's recent budget, but warned that spending levels must be kept under control.

'Increases in government net spending are the one area of concern...With the annual growth rate slowing to six percent the previous levels of public expenditure could not be sustained and while there is uncertainty over the future, the future revenue implications of capital expenditure proposals must be kept in line with the Island's ability to pay,' he observed.

However, Mr Henthorn told the IOM Online that overall, the Chamber thought that the budget was 'positive and purposeful', explaining that:

'The moves towards implementation of the zero tax strategy with an ahead-of-deadline reduction in company tax across the board to 10% is a very welcome move. This provides certainty, particularly to the banking community at a time of increasing uncertainty in the offshore world.'

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