Deputy Collins had asked P&R for a breakdown of how much of the total of £353m. in net income tax had been paid by individuals in respect of 16 different areas, including pensions, employment, trusts, and various relief allowances.
The committee said it was not possible to refine the information this much but it was able to give broad figures showing that employment income accounted for between 75% and 80% of the tax take, pensions about 8%-10%, self-employment and dividends 7%-9%, 3%-4% was bank interest and up to 2% was net property income.
Deputy Collins said he was pleased with the responses and getting these figures was helpful with States members about to debate the future tax strategy.
‘Knowing facts and figures is essential because they form the foundation of any informed decision-making, effective problem-solving, and accurate risk management,’ he said.
‘How can I propose any new system, when I don’t know the parts that work or not?’
It was important to understand what comprised the existing income elements before parts of it were changed, he said. ‘It’s not just about any new taxes.
‘It’s can the current system, that is clearly already broken, suddenly now work with any extra demands on it, changing the standard rate of income tax to 15%, having a higher rate of 20%, a new GST feeding into it, plus new social security allowances?’
He has his own plan that he intends to present.
‘I will wait for the policy letter which is to be published on Monday to see what they have come up with in the last year of work, but over the next few weeks I will present a different looking package to States members.’
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