Larger retailers in Jersey should find out later today (Thursday) whether or not they’ll face a new tax on profits.
It’s day three of the debate on the 2018 budget where arguably the most controversial proposal in the package of measures is the new tax targeted at shops with a turnover exceeding £2million and net taxable profit over £500,000.Those who do face a 20% income tax on their profits, though it will be tapered for those making profits of between £500,000 and £750,000.
Earlier this week, a proposal to introduce the tax at a 10% rate was rejected.
The tax, dubbed the Tesco Tax, has faced strong opposition, least surprisingly from those working in retail who say investment in staff, premises and products could suffer.
Ahead of the debate, Chamber of Commerce Vice-President and Chair of the Retail & Supply Committee, Mark Cox, spoke out against the plan.
He said: “It is important that commerce makes a fair contribution towards the island and the introduction of this tax appears to provide a degree of continuity for all retailers with a presence in Jersey. However, throughout 2017 there has been a constant drip feeding of business levies, charges and taxes. The budget is proposing this new retail tax, along with the widening definition of financial services, in order to capture more companies that pay the 10% rate. All of these measures are ultimately pointing towards the need for a thorough review of the island’s tax system.”
The debate has already seen a raft of propositions from a Senator Philip Ozouf rejected, though his call for digital firms such as Apple to be prevented from charging island customers UK VAT was backed.
You can read the full package of measures from Treasury Minister Senator Alan Maclean here.
