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Impact of GST on lowest wage earners

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WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES BY DEPUTY G.P. SOUTHERN OF ST. HELIER

ANSWER TO BE TABLED ON TUESDAY 25th SEPTEMBER 2007

Question

Following the publication of the most recent figures released by the UK Treasury which reveal that the lowest 10 per cent earners in the UK pay 26 per cent more tax (direct and indirect, including VAT) than the highest 10 per cent would the Minister inform members whether the introduction of GST may lead to a similar outcome for Jersey in the long term?

Answer

I am not aware of the figures to which the Deputy refers. However, I would find it difficult to believe that the UK Treasury states that the bottom 10% of UK earners pay 26% more in tax than the top 10% of earners.

I am happy to confirm that the introduction of GST could not possibly result in the bottom 10% of earners in Jersey paying more in tax than the top 10% of earners.