Guernsey Press

Radical tax plans would end family allowance and double TRP

RADICAL proposals to change the way islanders pay tax have been published this morning.

Published

Among 41 suggestions there are plans to phase out family allowance, end mortgage interest tax relief and cancel a subsidy on prescriptions while doubling the tax on real property and raising the pension age to 70.

Such plans would be balanced by large increases in personal tax allowances so islanders would effectively pay less income tax.

The far-reaching proposals, put together by Treasury and Resources and the Social Security Department, are intended to prepare the island for falls in income tax revenue as the population ages and the number of working islanders falls.

The departments say that they will cap the amount taken in charges and taxes by government at 28% of GDP and that the changes, which will be phased in over 10 years, are not extra costs but a revenue neutral re-balancing of existing demands.

The proposal will be debated by the States in March.

For more details of the plans see Monday's Guernsey Press

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