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Wednesday, 17 October 2012

"A Budget To Finish The Poor People Off!"

"The Rich Can't Stand The Poor"



Smokers and drinkers hit hard
by Jersey budget

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Smokers, drinkers and motorists are being hit by Jersey's proposed budget for next year.

The Treasury Minister wants to increase duty on spirits and wine by 10%, strong beer and cider by 8%, and weaker beer by 5%.
 
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Jess Dunsdon went down to a pub in town to hear the objections, and put them straight to the Treasury Minister.

Bad news is being felt throughout the drinks industry.

Many are opposing the proposed hike in alcohol duty.
 
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A BORING BUDGET

While the Treasury Minister admits the duty rises won't be popular with some islanders, overall he describes his budget as boring.

Senator Ozouf says the main tax structure isn't changing, because the government has been careful about its spending over the past few years.

He says that after being £19 million in the red this year, by 2013 the books will be balanced.
Jess Dunsdon talked to Senator Philip Ozouf
 
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DUTY RISES

The proposals would add £1.05 on a litre of whisky, 13p on a bottle of wine, 4p on a pint and 2p on weaker ales and cider.

Tax on tobacco is set to rise by 10%, which would add 38p on a pack of 20 cigarettes.

Treasury Minister, Philip Ozouf said: "These measures support the Health Minister's drive to reduce the adverse effects on health of excessive alcohol consumption and smoking."

While fuel duty stayed the same this year, it is set to go up by 7% in 2013, putting 3p on a litre of petrol and diesel.

And vehicle emissions duty is planned to go up 5%. That's a tax that goes on new imported vehicles.

The proposed increase in the duty is worrying the car industry.

The head of Jersey Motor Trades Federation, Peter Tabb said: "The motor trade doesn't like any new tax - or any increase in tax that makes the sale more difficult of new vehicles in particular. New vehicle sales tend to be in decline and have been for 2 or 3 years. This theoretically could in fact just accelerate that."

The various duty increases would help pay for £56 million worth of capital projects for the island such as a new primary school in St Martin and social housing refurbishments.

GOOD NEWS FOR FIRST TIMERS

There is some good news in the proposed budget for first time buyers.

They will continue to benefit from a reduced rate in stamp duty on properties costing less than £450,000 until 2014.

It means they would pay a maximum of £2,000 in property tax.

Senator Ozouf said: "The purpose is to make it cheaper for first time buyers to purchase a property, thereby acting as a stimulus to the housing market."

The level at which low earners start to pay tax is proposed to rise from £13,370 to £13,780.

GST is set to remain at 5% and there are no planned changes to income tax.

TAX AVOIDANCE CLAMPDOWN

A number of anti-avoidance measures are also being introduced to claw back unpaid tax.

They include making people who pay themselves via a company pay tax on their income, and stopping companies from sheltering profits by offsetting them against losses from a sister company.

Finally, it is proposed that high earners will no longer get income tax relief on premiums they pay for life insurance cover.

The proposals will now be considered by States members and will be voted on in December.

1 comment:

  1. The increase in the budget regarding drinks and cigarettes does not harm me as I don't smoke and I don't drink but the rise in petrol prices affects everyone even if they don't drive. The price of goods will go up as a result.

    Ahimsa

    ReplyDelete