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ADDENDUM
Addendum
At the conclusion of the States debate of the 2013 Draft Budget on 5 December 2012, the States had approved two amendments to the original proposition from the Minister for Treasury and Resources.
Amendments Agreed
Amendment (as proposed by Deputy G.C.L. Baudains)
The effect of this amendment is to decrease the estimate of income from taxation during 2013 by £1,435,000 by not implementing the proposed 3 pence per litre increase in fuel duty.
Fifth Amendment (as proposed by the Minister for Treasury and Resources)
The effect of this amendment is to increase the estimate of income from taxation during 2013 by £395,000 by increasing the proposed increases on tobacco duty from 10% to 13.2%.
The States also approved two amendments to the Draft Income Tax (Amendment No. 41) (Jersey) Law.
Amendments Agreed
Amendment (as proposed by the Minister for Treasury and Resources)
The Draft Income Tax (Amendment No. 41) (Jersey) Law introduced a set of rules ( the distribution rules ) which seek to prevent Jersey resident individuals using Jersey companies to avoid and/or excessively defer a liability to Jersey income tax. Following the lodgement of the amendment, the Tax Policy Unit and Taxes Office held meetings with a large number of Jersey tax advisers and received a number of representations regarding the operation of the new rules. In response to these representations, a small number of changes to the distribution rules were proposed.
Second Amendment (as proposed by the Minister for Treasury and Resources)
The Draft Income Tax (Amendment No. 41) (Jersey) Law changed the tax exemption available to non-residents in receipt of distributions from Jersey companies. This further amendment ensured that this rule change applied for 2009 in order to protect tax revenues.
Summary
The approved amendments to the 2013 Budget will reduce the estimates of total taxation revenue to £613,789,000 and the total States income to £646,004,000.
The balance on the Consolidated Fund at the end of 2013 is estimated to be £18,677,000. Note:
This Addendum includes minor textual changes and updated summary tables to reflect the above amendments.
Budget Statement 2013
Figure 5.5 A comparison of typical 2012 tax and duty levels for a range of commodities: This table replaces Figure 5.5 as shown on page 34 of the Draft Budget Statement.
Jersey France Jersey GST Guernsey UK VAT France TVA
Duty @ 5% Duty UK Duty @ 20% Duty @ 19.6% Litre of Whisky
£10.45 £0.90 £10.31 £10.72 £2.67 £5.31 £2.89
@ 40%
Bottle of
£1.25 £0.30 £1.43 £1.90 £1.13 £0.02 £1.12 table wine
Pint of
beer/lager £0.31 £0.16 £0.36 £0.50 £0.57 £0.06 £0.74
@ 4.5% abv
Pint of
beer/lager £0.47 £0.19 £0.36 £0.61 £0.60 £0.07 £0.83
@ 5.5% abv
20 King Size
£3.79 £0.31 £3.29 £4.50 £1.22 £3.12 £0.74 cigarettes
Litre of
£0.43 £0.06 £0.45 £0.58 £0.22 £0.49 £0.18 Unleaded Petrol
Litre of Diesel £0.43 £0.06 £0.45 £0.58 £0.23 £0.34 £0.18
Figure 8.1 Financial implications of the 2013 Budget proposals:
This table replaces Figure 8.1 as shown on page 40 of the Draft Budget Statement.
Measure | Estimated 2013 Taxation Revenue |
Imp ts alcohol | £19,000 |
Imp ts tobacco | £1,612,000 |
Imp ts fuel | £0 |
Vehicle Emission duty | £50,000 |
Budget measures, tightening tax compliance and reducing avoidance and reduction in bad debts | £4,965,000 |
Total £6,646,000
Manpower implications
The proposals within the Budget Statement 2013 will be implemented without any increase to current approved staffing levels.
Summary Table A – States Income 2013
MTFP MTFP Proposal Budget Forecast (Budget) |
2012 2012 2013 £'000 £'000 £'000 |
Income Tax |
Personal Income Tax 344,000 360,000 377,000 |
Companies 76,000 74,000 77,000 |
Provision for Bad Debt (4,000) (4,000) (4,000) |
416,000 430,000 450,000 |
Budget Measures Tightening Compliance on Tax Collection 6,646 and Reducing Avoidance |
Goods and Services Tax (GST) 80,047 77,700 79,761 |
Impôts Duties |
Imp ts Duties Spirits 4,162 4,066 4,157 |
Imp ts Duties Wine 6,923 6,809 7,248 |
Imp ts Duties Cider 914 948 1,039 |
Imp ts Duties Beer 5,530 5,549 5,732 |
Imp ts Duties Tobacco 13,609 12,642 12,392 |
Imp ts Duties Fuel 21,952 20,014 20,799 |
Removal of Imp ts Fuel Duty Rebate in Bus Contract 336 |
Imp ts Duties Goods (Customs) 150 150 150 |
Vehicle Emissions Duty (VED) 1,260 939 1,000 |
54,500 51,117 52,853 |
Stamp Duty |
Stamp Duty 22,429 21,435 22,978 |
Stamp Duty on Share Transfer (LTT) 1,600 1,434 1,551
24,029 22,869 24,529 |
Total Taxation Revenue 574,576 581,686 613,789 |
Other States Income |
Net Investment Income 3,960 4,060 3,721 |
Dividends and Returns 13,417 19,075 8,319 |
Planned Addition to Shareholder Returns |
Jersey Financial Services Commission Fees 3,700 3,700 3,700 |
Returns from States Trading Operations 2,511 1,652 1,691 |
EUSD Retention Tax 1,500 1,500 1,500 |
Income Tax Penalties 1,000 1,071 1,071 |
Fines and Other Income 494 527 543 |
26,582 31,585 20,545 |
Island Rate Income from Parishes 11,185 11,330 11,670 |
Total States Income 612,343 624,601 646,004 |
Budget Statement 2013 |
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Summary Table E – Consolidated Fund Forecast for 2013
Original MTFP MTFP Actual budget Forecast Forecast
2011 2012 2012 2013 £'000 Consolidated fund £'000 £'000 £'000
40,625 Opening balance 24,770 47,166 32,738
Proposed Capital Expenditure Allocation
(27,000)
Housing Schemes
Other Fund Adjustments Return of Housing Capital
Other Fund Adjustments Allocation to to Capital Programme
Repayment of JT Preference Dividends 20,000
Other Fund Adjustments -
(8,500) Allocation to Capital Programme
Other Fund Adjustments -
(5,000)
Allocation to Innovation Fund
Other Fund Adjustment -
7,000 (7,000) Earmarked Carry Forward from 2012 to Fund Capital
Other Fund Adjustment -
3,300 Earmarked Carry Forward from 2013 to Fund Capital
Other Fund Adjustment -
(2,274) (1,528) Jersey Post Special Dividend 2012 to Fund Capital
26,835 Other Fund Adjustments 2,032
(24,838) Forecast Surplus/Deficit for the year (19,412) (7,154) 707 Impact of Budget Amendment (1,435)
Impact of Treasury and Resources Budget
395 Amendment
46,000 Transfer from/(to) the Stabilisation Fund
(41,456) Carry forward expenditure to 2012
Estimated Consolidated Fund Balance
47,166 Central scenario 7,390 32,738 18,677