As the Income Tax Instalment Scheme will be introduced a month after Islanders have paid their December tax bill – and so soon after Christmas – it is feared up to £15m will be sucked out of the economy in one swoop.
And this prospect is bad news for retailers, as consumer spending is already slowing and a number of other significant tax changes are on the horizon.
In the monthly Chamber of Commerce newsletter, Chamber president Kevin Keen said: ‘Employees will face quite substantial deductions from their pay at the end of January, and when this is combined with the tough trading environment we appear to be in, let’s hope that an economy which we are seeking to grow doesn’t go in the other direction.’
