Fiona Kerley has urged ministers to commit to a full review of increases in Vehicle Emissions Duty approved in last year’s Budget and introduced this year.
She claims that Members have brought about a ‘significant tax rise’ on the basis of a 100-word proposal which was considered by them for only 30 minutes.
The changes were the result of an amendment from Grouville Constable John Le Maistre, who proposed increasing VED – a one-off tax on vehicles when they are registered in the Island based on their carbon dioxide emissions or engine size – by 5%, rather than the standard 2.5%.
He also successfully proposed lowering the duty’s band thresholds, which ultimately put many vehicles into a higher price category.
Businesses have reacted angrily to the changes, including garage owner Tony Roberts, who claimed that he lost three vehicle sales in the first week of this year because the cost of VED soared by as much as 177 per cent on certain vehicles, such as Ford Transit vans, which moved up two VED bands overnight.
Now the Jersey Hospitality Association, which represents hundreds of small businesses such as car hire firms, said that a number of its members had come forward with concerns that the new regime could put them out of business.
Ms Kerley said she believed that States Members failed to carry out sufficient research before agreeing to the changes.
‘Because this change was due to a budget amendment brought by the Constable of Grouville, there was no industry consultation beforehand, so States Members did not have the full facts before them when they supported this change,’ she said.
‘We believe that the States have fallen victim to the law of unintended consequences. The JHA urges the Council of Ministers to commit to a review of this change in VED at an appropriate date.
‘While the States can take a considerable length of time to reach the smallest decisions, here we have a significant tax rise that was proposed in a 100-word amendment and decided after approximately 30 minutes of debate.’
Members voted as follows to change the thresholds as proposed by Mr Le Maistre:
For
Senators Paul Routier, Philip Ozouf, Alan Maclean, Ian Gorst, Lyndon Farnham and Andrew Green; Constables Simon Crowcroft, John Refault, Deidre Mezbourian, Michel Le Troquer, John Le Maistre and Philip Le Sueur; and Deputies Geoff Southern, Carolyn Labey, Jackie Hilton, Anne Pryke, Montfort Tadier, Eddie Noel, Tracey Vallois, Mike Higgins, Jeremy Maçon, Susie Pinel, Rod Bryans, Kristina Moore, Sam Mézec, Louise Doublet, Russell Labey, Scott Wickenden, Murray Norton, Terry McDonald, David Johnson, Graham Truscott and Peter McLinton (33)
Against
Senator Sarah Ferguson; Constables Len Norman, Juliette Gallichan, Michael Paddock, Steve Pallett and Chris Taylor; and Deputies Judy Martin, Kevin Lewis, Andrew Lewis and Simon Brée (10)
