Budget 2012 announced

Go down

Budget 2012 announced

Post by GD on Sat 24 Sep 2011, 6:52 pm

Jersey's 2012 budget proposals have been announced and we can reveal they include proposed price hikes on alcohol and cigarettes.

But there is good news for parents of young children as tax relief on child care is set to double.

The big planned price increases are 50p on a litre of spirits and 35p on a packet of 20 cigarettes.

A bottle of wine has a proposed 6p increase and 1p on a pint of regular beer, with 2p on strong beer.

This year's budget proposals come at a time when the island is struggling to balance the books and has already taken steps to cut public spending and increase tax - including the recent rise in GST from 3 to 5%.

The States need to manage a predicted deficit of £19 million in 2012.

Vehicle emission duty is planned to go up 5% and there is no planned increase on fuel duty.

Increase on income tax exemption threshold is proposed to go up by 4.5% and there is a planned increase in stamp duty and court fees.

There is good news for families with young children, with a proposal for child care relief for younger children to be doubled - from just over 6,000 to 12,000.

The Treasury and Resources Minister, Senator Philip Ozouf said: "This budget shows our commitment to the difficult decisions made in last year’s Budget which are now
starting to bear fruit. We are on track to meet our savings target, to close the £100m
deficit and to balance our budget by 2013. We are in a strong position.

"We are, however, conscious that many families have been feeling the pinch. With that in
mind, this Budget proposes to almost double the child care relief for younger children. This is the biggest targeted improvement in taxation for families with young children that
the Island has ever had. It puts money back in people’s pockets, without adding any
administrative inefficiency or costs."

The proposals in the Draft 2012 Budget include:

Tax exemption thresholds will increase in line with inflation of 4.5% to ensure people on low incomes remain outside the tax net. The Treasury department says this leaves an extra £7 million in people’s pockets and will stimulate the economy.

Tax allowances for those within 20 means 20 will be maintained

Childcare relief will be extended to include States nurseries. The tax relief will also increase for childcare costs for children up to the time they are eligible for States-provided early years education from £6,150 to £12,000 per year.

Income tax relief on pension contributions will be restricted for those earning more than £150,000. This measure is another step towards 20 means 20 for higher earners.

ISE fees paid by banks will be increased by two thirds from £30,000 to £50,000 per year to match the GST increase and to meet the commitment given in the 2011 Budget.

There is no increase proposed on fuel duty.

It is proposed to increase tobacco duty by 10% (35p on a packet of 20 cigarettes) and alcohol duty by 5% (50p on a bottle of spirits, 6p on a bottle of wine and 1p per pint of beer or cider).

Vehicle Emissions Duty rates will be increased by 5%.

A cap of £50,000 will be imposed on tax free termination payments, thereby reducing the tax free amount of payments received on termination of employment, affecting primarily high earners.



Impact of the Budget proposals on a ‘typical’ family unit (from the official Budget proposals)

In each of the following scenarios, there would be an annual tax saving of £1,830:

Scenario 1
A married couple where both parents work and have a household income of £80,000. They have 2 children, one of which is under the age of 3 and pay £12,000 nursery fees and have a £400,000 mortgage.

Scenario 2
The same scenario as above but this family do not have a mortgage because they live in rented accommodation.

Scenario 3
A married couple where both parents work and have a household income of £55,000. They have one child under the age of 3 and pay £12,000 nursery fees and have a £275,000 mortgage.

Scenario 4
The same scenario as above but this family do not have a mortgage because they live in rented accommodation.

You can read the full budget here: http://www.gov.je/Government/Pages/StatesReports.aspx?ReportID=654 (from CTV)


......THE BOSS......

"Always be yourself because the people who mind don't matter, and the people who matter don't mind"

avatar
GD

Male
Number of posts : 10122
Location : Channel Islands
Job/hobbies : Website Forums...lol
Humor : Anything that makes me laugh
Registration date : 2008-03-06

http://www.vuedesisles.com

Back to top Go down

Back to top

- Similar topics

 
Permissions in this forum:
You cannot reply to topics in this forum