And, the States will also be asked to scrap the ‘20 means 20’ tax rate and move all Islanders onto a marginal relief rate of 25 per cent – potentially giving two-thirds of Islanders a tax cut.
The proposals form two separate amendments – both from government ministers – to next month’s Budget debate.
Environment Minister John Young is calling on the ministerial team to review the ‘potential and feasibility’ of a range of environment taxes with the view to including them as part of the 2020 Budget.
He is seeking to reduce the number of vehicles on town roads and is asking for the States to explore ‘workplace car-parking charges, increased public car-parking charges, road and vehicle usage charges applied in peak hours in town (congestion charges with potential social, business and resident exemption) and charges for polluting vehicles’. The minister has also called for the Infrastructure Levy – which was previously rejected by the Assembly last year – to be revisited. The infrastructure levy would require those benefiting from a rise in land value to pay a small percentage of the sale of the land to offset the impact of development on the environment.
Discussing potential waste charges, Deputy Young said: ‘This could include charges for waste generated and sent to disposal with the potential to encourage waste reduction, particularly single-use plastics and a reduction in carbon emissions.’
Meanwhile, Children’s Minister Sam Mézec has lodged an amendment which, if approved, would overhaul the Island’s tax regime.
The proposals would remove the personal tax rate with those at the ‘very top of the income spectrum’ being asked to pay more.
Under the current system, Islanders pay the lower of the ‘marginal’ 26 per cent rate, which has a generous exemption threshold and numerous allowances, or the 20 per cent ‘personal’ rate, under which there is no threshold and far fewer allowances.
Effectively, the system means that lower earners pay the marginal rate and higher earners the personal rate. High-value residents are wealthy immigrants who relocate to Jersey and are offered a special tax deal.
If approved, the changes would come into force ahead of the 2020 tax assessments.
Reform Jersey chairman Senator Mézec said: ‘During the election, we pledged that if our members were elected, we would aim to make the income tax system simpler and fairer to reduce inequality.
‘We believe the States need to take action to deliver on our commitment to improving the standard of living for Islanders, and hope that Members will be persuaded by our proposal to put more money in the pockets of ordinary Islanders, while asking those who have the broadest shoulders to carry more of the burden.
‘Our proposals have been independently verified by the Treasury Department, who have confirmed that this would raise an extra £7.5 million in revenue per year, which we would want to see invested back in our public services.’
The States are due to debate the Budget during the Tuesday 4 December sitting.
