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1240/5(3599)
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 4th DECEMBER 2007
Question
- Will the Minister estimate how manyhouseholds/individuals fall into the gap' identified betweenIncome Support andIncome Tax thresholds andwhowill able to receive the type of special paymentannouncedin the Assemblyat the last meeting?
- Will the Minister explain when and how such numberswere identified and when andhowthe sums ofmoney required were calculated?
- Will the Minister advisemembershow this policy creates and supports independence' in line with the first key principle of the Social Policy Framework and isnotsimply a quick fix'which is identified as a fault of current social policy in the Framework?
Answer
- It isnotpossible to accurately estimateat present howmanyhouseholds will neither receive incomesupport nor payincome tax. Indications are,however, that it is likely tobeless than half a householdincomequintile i.e. less than 3,500 households. A detailed schemeisbeingdeveloped,including the criteria to receive the special payment.Thisscheme will be broughttotheAssembly for approval.
- As stated above, such numbers have not been accurately identified as yet, but basedon it beingless than the 3,500 householdsthesumofmoney required for the refunds couldbe in the region of£300,000.
- The prime purpose of this policywastoavoid a taxgiveaway of over £2m to the highest earners in society, incur more than £0.5m inadministration, and increasebusinessescostsand complexity, in ordertoprovide only £300,000 in benefittosomeoftheless well off, through thezero rating offood. Accordingly its prime purpose was not to create and support independence'. Its purpose was simply to provide a simpler and fairer solution to the effect of imposing GSTon food onthesame basis as the U.K.