Guernsey 2013 budget agreed after changes made

Guernsey's 2013 budget has been approved by the States after five changes were made to the proposals.

The withdrawal of a move to reduce mortgage interest relief and an extra 1% on tobacco duty were among changes agreed on Wednesday.

Rises in duty on alcohol, fuel and property, which came into effect in November, were approved.

2013 Budget headlines

  • Expansion of which companies pay 10% tax under Zero-10 system
  • 7% rise in tobacco duty - 24p on a packet of 20 cigarettes
  • Alcohol duty increases 3% - 1p on a pint of beer, 5p on a bottle of wine and 31p on a litre of spirits
  • Motor fuel duty rises by 1.5p per litre to 46.5p
  • 3% rise in personal tax allowances - up to £9,475 for a single person

Deputies also agreed some insurance and fiduciary companies would be charged 10% corporate tax from 1 January.

Previously such companies paid no tax under the island's Zero-10 system, which was formally approved by the European Union last week.

This move aims to raise an additional £12m in tax in 2013.

After more than a day-and-a-half of debate on the changes to the budget, it was approved unanimously.

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