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'Jersey In Figures' Report Published

by Jason Gorringe, Tax-News.com, London

19 March 2007


The States of Jersey Statistics Unit last Wednesday released its annual compendium of statistics, 'Jersey in Figures 2006'.

The report is published annually in the spring, and presents key economic and social information about the Island within a single source. It includes key data produced by a range of States Departments and official organisations alongside the data published by the States of Jersey Statistics Unit.

With regard to income and expenditure, the report revealed that in 2005, the States of Jersey incurred a surplus of GBP3 million, an improvement of GBP9 million from a budget deficit. This was largely due to Income Tax receipts totalling GBP7 million more than the budgeted amount.

The total income for 2005 amounted to GBP469 million, GBP23 million more than in 2004. Total States net expenditure was GBP466 million, comprising net revenue expenditure of GBP423 million and capital expenditure of GBP43 million. The increase in total States expenditure of 0.2% was lower than the 2004 increase of 3.8% and is in line with the States commitment to constrain expenditure growth.

Income tax, paid by individuals and businesses, was expected to have raised 77% (or 77p out of each GBP1) of States income.

The report went on to reveal that total income tax revenue in 2005 was GBP377 million, which was GBP14 million more than in 2004. Tax receipts have increased by 2.7% since 2002 and are projected to increase each year until 2009 before falling in 2010 as a result of the introduction of “0/10” (the new business tax regime).

The new tax structure is expected to mean a reduction of GBP80 to GBP100 million per annum in tax receipts from business over the period of 2010-2013.

Between 2001 and 2006, tax receipts from employees increased by 61%, whilst that derived from companies (excluding International Business Companies (IBC’s), and Exempt Companies (EXCOS), decreased by 17%.

Employees paid 43% of total income tax in 2006 compared to 30% in 2001.

In recent years the proportion of tax revenue from companies, IBC’s and EXCOS has reduced from 58% in 2001 to 48% in 2006. The decline in tax from corporations has been partially offset by the continued growth in revenue from personal tax.

The growth in personal tax revenue is partly due to the policy of freezing personal exemptions and allowances, leading to a slightly higher proportion of people becoming liable to pay tax each year.

The effect of the policy has been that the proportion of people eligible for tax assessment and thus liable to pay tax has increased from 57% in 1993 to 73% in 2005.

The Statistics Unit figures additionally revealed that impôt duty receipts in 2006 were GBP51.4 million, GBP1.6 million more than in 2005. Since 1997, the money raised from impôt duties has more than doubled and has increased by over 50% since 2000.

In 2006, impôt duties on road fuel generated the most revenue, GBP19.05 million (37% of the total impôt receipts) with tobacco duty raising GBP12.95 million (25% of the total). Vehicle registration duty and the individual alcohol categories each contributed between 8% and 11% of total duty collected.

It observed that:

"The revenue raised from motor fuel and tobacco duties has increased markedly over the past 10 years. However, whilst duty from tobacco has doubled and motor fuels has increased three fold over the same period, both are now showing a slowdown in the rate of increase. Duty raised from spirits has seen little change whilst that raised from beer and wine has more than doubled."

"Whilst the rate of duty has been increasing in most years, the volumes of duty liable products imported have generally fallen. In 2006 beer imports are down by 21% on 1996 levels, road fuel down 10%, spirits down 41% and tobacco more than halved. However, the volume of wine and cider imports has stayed predominantly flat over the period."

The full text of 'Jersey In Figures 2006' can be found in the Tax News Resources section.


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