Sarkees favour tax increase for derelict properties
MORE than a third of Sark’s population responded to the ideas put forward in the island’s tax review.
The ideas of a bed tax and plate tax were both firmly rejected, but the idea of increasing tax for short-stay residents and on derelict properties were both popular.
The exercise aimed to gather the residents’ ideas on the island’s future taxation issues.
Nearly 250 responses were received – the taxation review committee’s had targeted 200 and was pleased with ‘very positive participation’.
‘While the questionnaire was not a referendum on taxation methods it has provided the committee with some very clear steers on which areas to investigate further and bring forward for further consultation,’ said chairman Kevin Delaney.
The survey was structured around 12 key questions, with a one to five rating on how strongly they were supported.
Sark does not levy any income tax, inheritance tax, capital gains tax or VAT on residents. It does levy a property and a personal tax on residents who have a property available to them for 90 nights a year.
More than 50% of respondents gave full marks to the ideas of introducing a tax on derelict buildings to encourage development and taxing newly-arrived residents from the 91st day after their arrival.
There was also strong support to close a loophole that allows residents to reduce their property tax by declaring part of a dwelling as tourist accommodation or an office, as well as support to significantly increase taxes for residents who stay for the shortest possible duration to secure their own tax benefits throughout the year.
At the other end of the scale, more than half gave a score of one to the idea of a plate tax, which could have seen £1 levied on each meal sold.
There was also little support for a tourist bed tax.
The most even spread of results came for the question asking whether Sark currently has a fair and equitable tax system.
All the comments from the review have been analysed, and they will form part of the second stage of the investigation into future tax consultations.
The committee will now pull together focus groups from across the community to look at ideas.
