Letter - Economic and International Affairs Scrutiny Panel - to Treasury and Resources Minister - Me

States Greffe: Scrutiny

Deputy Susie Pinel

Minister for Treasury and Resources By email

25th June 2021 Dear Minister

Economic and International Affairs Scrutiny Panel Taxation of Profits on Medicinal Cannabis in Jersey

You will be aware that the Panel is undertaking a Review of the Regulations for the Licence Application, Production and Export of Medicinal Cannabis in Jersey. As part of the Review, the Panel is seeking to understand the relationship between medicinal cannabis cultivation in Jersey and the taxation of profits on medicinal cannabis and medicinal cannabis related products.

Further to this, the Panel would be grateful if you could provide responses to the following questions:

1. Under Part 4 of the Government Plan 2021-24, it is stated that one of the measures to raise  approximately  £10m  is  the  taxation  of  medicinal  cannabis  growing  and processing'. Please can you advise when you intend to propose legislation for the taxation of medicinal cannabis growing and processing?
2. In respect of taxation of medicinal cannabis growing and producing, when do you anticipate that the amendment to the Income Tax (Jersey) Law 1961 will come into force?
3. What percentage of the target £10m per annum in tax revenues will be made up of taxation of profits on medicinal cannabis growing and processing?
4. Will medicinal cannabis cultivators and processors be treated any differently for the purposes of taxation of medicinal cannabis growing and processing?
5. Do you intend to follow the Government Plan 2021-24 proposals in respect of the taxation of medicinal cannabis growing and processing?

We look forward to receiving your responses to these questions and ask that you provide a reply by Friday 2nd July.

Yours sincerely

Deputy David Johnson

Chair

Economic and International Affairs Scrutiny Panel