STATES Members have agreed to increase the minimum tax paid by new high-value residents by almost 50%.
In the Assembly yesterday, politicians backed a proposal from Treasury Minister Ian Gorst to up the tax threshold from £170,000 to £250,000 annually.
Deputy Gorst noted that this change would see Jersey’s tax take ‘increase considerably’, potentially by £1.2 million a year.
The minister told Members that these changes would ‘maintain a position that’s competitive overall while raising more revenue, and that is, of course, good tax policy’.
‘It will maintain confidence in Jersey as a jurisdiction that is open for business and investment,’ he added.
The proposition was adopted almost unanimously, with 44 Members voting for and only one voting against. The lone voice of dissent was Trinity Constable Philip Le Sueur.
However, despite offering their support, objections were raised by various Reform Jersey politicians.
Deputy Sam Mézec, the party’s leader, stated that while he ‘saw no practical reason’ not to support the proposition, he added: ‘I do so with a degree of resentment because while this would be a small step in the right direction, it does ultimately maintain the unfairness and discrimination upon which the foundations of this entire scheme are set.’
Likewise, Deputy Rob Ward expressed his concern that the change was merely a ‘token gesture’ and felt that ‘certain Members held their nose as they pressed the button’.
At this sitting, States politicians are also due to debate Reform Deputy Lyndsay Feltham’s proposition calling for the removal of the tax breaks for high-value residents and a suspension of the 2(1)(e) regime.
