More overseas aid? Taxes would be higher

More overseas aid? Taxes would be higher

Senator Frank Walker has told a Scrutiny sub-panel investigating the Island’s aid policy that if Jersey wanted to bring its contribution up to 0.7% of Gross National Income (GNI) – a level attained by many other European nations – then GST may have to rise from the proposed three per cent to 4.5%. Giving evidence along with Treasury Minister Terry Le Sueur, Senator Walker said the Island’s contribution would then amount to £22 million – and if Islanders were not prepared to pay for it then essential services would suffer. Following a question by panel chairman Senator Jimmy Perchard, Senator Walker said: ‘Does the States agree that and then reduce its expenditure in other areas like health, education and social security? Or do we increase taxation to pay for it? It is equivalent to 1.5% on GST. Those things cannot be ignored. ‘We are faced with increased expenditure on the prison, with third party appeals and winter fuel allowance, there are choices to be made, and frankly the States can’t do it all. ‘To leap in now and say GST is going to be at 4.5%? I personally don’t think that would fly too far with the tax-paying public.’

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