Jersey Chamber: retail tax plan lacks detail

Credit: Britta Pedersen DPA/PA Images

Jersey's Chamber of Commerce says proposals to introduce a new tax on larger retailers lacks detail.

Senator Sarah Ferguson wants those making more than £500,000 in profit to be taxed at a rate of 20% - in an effort to cut down on UK chains sending their takings off-island.

Her amendment to the 2017 budget will be debated next week.

The Treasury Minister backs the concept of corporation tax being extended beyond the existing limited number of firms - primarily in the finance sector - which currently pay it.

But Senator Maclean doesn't back specific calls for a new 20% tax on larger retailers' profits.

The Chamber of Commerce says the move appear to be a positive step in terms of creating a level tax playing field, it thinks there is insufficient information in what's being proposed.

It specifically wants to know why only retailers would be targeted and whether the risk of companies facing double taxation, that's a tax bill in two different jurisdictions, has been investigated.

As with all legislation, the Jersey Chamber of Commerce would expect our government to have considered and carried out substantial impact reviews before taking propositions to the States for debate and before voting on such a major piece of legislation.

– Jersey Chamber of Commerce