An amendment to reverse plans to freeze the threshold was rejected by Members 25 votes to 20, with the overall budget approved later in the day.
The freeze is intended to raise an extra £200,000 for the Treasury and help bring the pensioners’ threshold gradually in line with that of other Islanders.
Currently the level at which pensioners begin paying tax is higher than for younger Islanders – £15,900 for a single pensioner compared to £14,200 for a single person aged under 65.
Addressing the Assembly yesterday, Deputy Carolyn Labey, who lodged the amendment, said that she believed that poorer pensioners would be most affected and that their threshold should be increased by 0.9 per cent like for the rest of the population.
Treasury Minister Alan Maclean, defending his Budget, said that the increasing cost of Jersey’s ageing population had to be considered.
The minister also pointed out that he felt it was unfair that working Islanders should pay higher taxes than pensioners.
