Monday 08 April 2013
The Treasury & Resources and Social Security Departments today launch a joint consultation on personal tax, pensions and benefits in Guernsey. The public consultation is part of a two year review of the way that the States collect tax from, and pay benefits to, the people of Guernsey.
The objective of the review is to ensure the long term sustainability of public finances and services, and to ensure that the systems of taxation and benefits are fair, efficient and simple, rewarding hard work and providing support to those who need it.
Consultation documents have been published today, and they are on the website at www.gov.gg/ptr, and available from Sir Charles Frossard House, Social Security (Edward T Wheadon House), Income Tax Office, Guille-Allès library, and the Alderney Island Hall.
The role of the public consultation is to:
- encourage informed public discussion about the options available for revising the personal tax and welfare systems;
- communicate and explain the workings of the current systems;
- outline examples of how the systems could be revised to meet the objectives of the review;
- gauge public opinion on the maximum amount the States should spend on public services, pensions, and welfare;
- gauge public opinion on the appropriate limit on the amount of money that should be taken out of the local economy to fund this expenditure; and
- gauge public opinion on the maximum amount of this which should be generated by personal taxes.
Deputy Allister Langlois, Minister for the Social Security Department, said:
"To be able to balance the books in the long term, the States must overcome two challenges; clearing the short term deficit, and maintaining a long term balanced budget in light of the projected increase in the cost of old-age pensions and caring for an ageing population."
"Measures to clear the current deficit are already underway. However, in the long term, the ageing population is expected to exert a substantial pressure on States spending, predominantly in the areas of pensions, health and long term care. The current Financial Transformation Programme (FTP) cannot fully address these long term issues, so we need to start thinking now about the future for Islanders. That is why we want to hear Islanders' views right at the beginning of this process."
Deputy Gavin St Pier, Minister for the Treasury & Resources Department, said:
"This consultation is the chance for everybody to have their say on how we plan for the future. It asks for people's opinions on the principles of personal tax, pensions and benefits in Guernsey for the years to come. It is the first time that the two departments have worked together in this way, and the first comprehensive review of tax and benefits and how they interplay.
"When the Budget Report was published late last year, I made it clear that our aim in Treasury & Resources was to ensure that the tax burden is appropriate and reasonable for all of Guernsey's taxpayers. This review will make recommendations aimed at introducing more equity, fairness and sustainability into the personal tax regime, as well as looking at how we best provide support to those who need it."
As well as general questions on the appropriate levels of tax, pensions and benefits, the consultation presents two sets of options. The first set of options outline ways in which the States might make the tax regime fairer or more efficient without changing the amount of revenue generated. The second set of options outline ways in which the States could raise additional revenues from the personal tax system to fund the increase in expenditure required to provide pensions and healthcare in the future given the additional demand on these services which may result from the ageing population and demand for new services.
These options are presented for the purpose of illustrating what could be done and receiving public feedback before more formal proposals are put forward. None of the options presented are being proposed at this time.
The closing date for the consultation is 31 May 2013.
-ENDS-
