Jersey politicians vote to keep 20% income tax rate

Jersey bank notes States members voted to keep the 20% income tax rate

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Wealthy residents in Jersey will not pay more than 20% tax on their income, politicians have decided.

Deputy Geoff Southern wanted to introduce a system that would tax people with higher incomes up to 30%.

Those arguing against the move said it would hurt the island's economy and damage its international reputation.

Deputy Trevor Pitman, who was one of the 12 who voted in favour, believed it was an issue of fairness.

He said: "Jersey signed up to a fair and more equal society, what does that mean? Is it just words?"

Members voted 39 against to 12 in favour of the change in the income tax system.

Treasury Minister Senator Philip Ozouf said: "The 20% flat rate of income tax has been the foundation of our post-war success. This vote sends out a message of stability to the global participants in the island's main industry.

"The Treasury conducted a wide-ranging consultation on personal taxation last year, after which the Council of Ministers supported the conclusion that a higher rate of income tax would have negative consequences.

"The message that goes out today is one of certainty, stability and competitiveness.

"With sound public finances, no debt and a firm three-year plan to bring our budget back into balance, we can now concentrate on attracting high quality, lucrative business and on creating new jobs for islanders."

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