The Progress Party does not have a tax to spend philosophy
The Progress Party have policies designed to support improved productivity and income for all islanders which in turn provides improved tax returns which can be invested in services for all in our community. Policies will link up together to improve islanders’ lives.
We will take a balanced approach to post COVID recovery, targeting investment to protect vital services like education and health, supporting people and businesses while keeping a lid on debt. We will promote good management of Jersey’s economy and learn from the mistakes of the past, because three years of growth in government spending has failed to reach front line services. “Investments” made in recent years need to be tested to see if they are working and have added value or if they have simply added cost burdens to our community.
We will seek to ensure excessive government spending is addressed before making any tax rises for Islanders. If tax rises are ultimately required then we will ask companies to contribute more rather than individuals, consumers and workers, as the latter have borne the brunt of recent tax changes.
We therefore commit to retaining the 20% income tax rate and no further increases in GST or social security until government spending has been addressed and companies contribute more to tax revenues.
Our developing Tax Policy
Tackling Inequality & Underinvestment
We will focus on driving economic growth with improved productivity while addressing long term challenges like inequality (such as access to quality housing) and underinvestment in education, health and infrastructure facilities.
Easing Pressure On Business
We will encourage investment, not just in reducing our carbon footprint, but across the economy as a whole through enhancing the capital allowances available to small and medium-sized businesses (SME’s). In addition, we will provide more flexibility to start-ups with their social security contributions. This will be done by way of giving contribution holidays to remove one of the barriers to entrepreneurism.
Cooling The Housing Market
We will make changes to Stamp Duty and LTT (Land Transaction Tax) for property transactions. We will introduce an enhanced tier of stamp duty and LTT for buy-to-let and second homes and additional measures for non-resident purchases.
We will tip the balance further towards first home buyers by introducing a residential land withholding tax (RLWT).
The RLWT will be paid by non-residents who purchase residential share transfer properties in Jersey. The aim of RLWT will be to act as a deterrent on future share transfer sales out of the Island. RLWT will also provide a much-needed boost to the supply of share transfer properties currently owned by non-resident landlords by encouraging them to leave Jersey’s housing market prior to RLWT coming into force thus providing additional supply to go towards meeting the demand by local first-time buyers.
We will also look into bringing in a bright-line property tax which will be aimed at taxing profits made by those selling properties for profit in quick succession. This activity currently increases demand and prices out of the scope of many first-time buyers.
Supporting International Policy On Multinationals
Long standing international tax rules have prevented Jersey from being a place to which to shift profit and rightly so. Changes like the introduction of Economic Substance rules and the OECD’s BEPS programs further ensure that Jersey complies with international standards. Tax neutrality is not abusive and it is important that we maintain this to support Jersey’s important international finance role. Jersey must continue to be a fast follower of international finance regulation and to evolve and adapt the excellent skill base we have.
We will seek to ensure there are no knee jerk reactions to raise taxes or social security to deal with short term deficits. The impact on Jersey of the new international standard on minimum tax rates for the largest multinationals must be fully understood. This may bring an opportunity for Jersey to raise additional taxes from the largest businesses that operate in the Island which aligns to our policy of asking companies to contribute more.
We will seek fair, simple, low and broad user pays charges to replace fuel duties as technology moves us away from Internal Combustion Engine vehicles. We will encourage lower on island carbon emissions via tax incentives.