During a Scrutiny hearing, Deputy Susie Pinel was quizzed by Senator Kristina Moore on the issue after the Fiscal Policy Panel recommended this week that the government should look at increasing tax revenue in the ‘medium term’.
The FPP has consistently advised against tax hikes while the Island’s economy recovers from Covid-19 but has suggested measures are looked at in a later stage, as the government needs to recoup the costs of its pandemic response.
Senator Moore asked whether the minister would have any advice on the matter for whoever takes on the role of Treasury Minister after next June’s general election.
‘The FPP stated in recommendation one [of their report] on tax revenue that raising revenue for the medium term is important and the government should clarify this in its next government plan,’ Senator Moore said.
‘What will your advice be to the Treasury Minister who will follow in your footsteps in terms of answering that question?’
Deputy Pinel said that tax hikes would have to be looked at by whoever had her job in the next Council of Ministers.
‘There may well be taxes to be considered. We don’t need to do it now but that is for the future. We’re not sure what form it will be,’ she said.
‘We’re not looking at it in this Government Plan but we think, with the expenditure in this plan, we may need to look at that.’
Also during the hearing, which was led by the Government Plan Review Panel, Deputy Steve Ahier questioned the Treasury team about the plans for its proposed new technology fund.
Assistant Treasury Minister Lindsay Ash said that the Island and government had a number of digital shortcomings, such as up-to-date population data, which needed to be addressed.
‘Our whole digital sector needs revamping, including the government,’ he said.
‘Obviously, the future of government has to be to move towards digital and to have the data there before we can make decisions on such things as population, which we are very short of data on.’
