Deputy Kevin Pamplin believes the Island needs to look at a fairer tax system that takes the pinch away from middle-earners.
His comments come after the Government Plan proposed savings of £100 million in the coming years.
Deputy Pamplin said: ‘The tax system needs looking at and there needs to be a fairer system in place.
‘The tax rate needs to be looked at and the 1% for high-net-worth individuals also needs to be looked at, because it is the people in the middle who are feeling the pinch and who will feel the pinch.
‘The brunt of it is being felt by people who are the middle earners – teachers, nurses and other workers.
‘Even if that 1% was to go up to maybe 2% or 3%, then it would make a huge difference, and a huge difference to help with the £100 million savings that the government has earmarked.’
High-net-worth individuals are charged 20% on the first £725,000 of their income – meaning they make a minimum annual tax contribution of £145,000. They are charged 1% on earnings above that threshold.
Political party Reform Jersey has regularly brought propositions to the States to overhaul the tax system by scrapping the ‘personal’ tax rates, thereby charging higher earners at an increased rate.
Under the current system, Islanders pay the lower of the ‘marginal’ 26%
rate, which has an exemption threshold and allowances, or the 20% ‘personal’ rate, under which there is no threshold and far fewer allowances.
Increases in duty on goods such as cigarettes and alcohol were included within the Government Plan.
High-strength beer and cider would rise by 8p per pint under the proposals, with tax on other alcohol proposed to rise.
Deputy Pamplin believes by changing the rules slightly for high earners, those taxes and other stealth taxes would not be needed.
He added: ‘The government needs to be brave in that aspect. I don’t think they have been brave enough.
‘If it goes to 2% or 3%, that takes the burden off the average tax payer, and there is no need to look for the stealth taxes like it does.
‘There isn’t a need to put the extra tax on cigarettes, the extra alcohol tax, or little taxes on other things.’
