Guernsey's 2012 budget includes tax rises

Taxes on petrol, alcohol, tobacco and property rise for the third year in a row, in the budget proposed for the States of Guernsey in 2012.

The rise in the duties came into effect at midnight, but will be debated in the December meeting of the States.

The budget includes a 1.7% increase in income tax allowances - a £150 rise for a single person.

The Treasury and Resources Department said the financial position was improving with the deficit reducing.

Minister Charles Parkinson said the anticipated deficits for 2011 and 2012, of £30m and £27m, were less than previously anticipated and down from a £37m deficit recorded in 2010.

2012 BUDGET PROPOSALS
6.5% increase in tobacco duty - 21p on an average pack
3.0% increase in alcohol duty - 1p on a pint of beer, 5p on a bottle of wine and 30p on a litre of spirits
9.8% fuel duty rise - 4p per litre (no change for marine use)
Tax on Real Property rise by 20% domestic - £20-25 per annum for the typical property - and 3% commercial
1.7% increase in personal income tax allowances
Rise in income tax caps by 10% - non-Guernsey income to £110,000, all income to £220,000, fixed charge to £27,500
The deficit is covered by funds from the contingency reserve, and Treasury and Resources is asking for £27m to be transferred to the department to cover the 2012 deficit.

The department said the Financial Transformation Programme, which aims to reduce States spending by £31m by 2015, was expected to deliver £5m of savings by the end of 2012.

It has previously said the majority of the reductions would occur in the latter half of the five-year programme.

All States' departments have been assigned a general efficiency target to help meet the programme's overall targets.

Treasury and Resources said the current deficits could be eliminated by 2014 through a combination of economic growth and expenditure restraint.

The States total spending for 2012 has been suggested at £361.8m.

Under the proposals the Health and Social Services Department would continue to have the largest budget with £109m, with Education the second biggest at £77m. (from BBC)

More money from the working man and those poor youngsters trying to better themselves buying their own home .

nothing surprising here then..hit the guernsey working man and leave the rich alone yet again .parkinson needs to be shot..one good thing he isnt standing again next year x

They are putting the petrol up at 8:00 pm at one garage at least , they were told to , i told they could not do that , first of all it has not been to the states yet (but we all know it will be passed) and 2nd its old stock . As Kat says the less well of again , target the rich for a change like 50% tax .

A Guernsey businessman says the States are wrong to keep imposing tax rises on motorists. Dave Beausire from Le Mont Saint Garage says an extra 4pence on a litre of fuel is nothing short of highway robbery and these annual increases need to stop.

Bet he increase his costs sooner than needed

4 pence on fuel. That must take it pretty close to UK prices (Tesco is currently 1.29). Take into account driving in low gears etc. - makes it more expensive in real terms. I saw on TIG that the average pack of cigarettes will be about 5.50. The brand I smoke in the UK is 5.28. Alcohol prices - I don't drink, so haven't a clue.
They wonder why tourism has all but died. It's time they learned... high taxes, poor economy.

Its well known that smokers subsidise non smokers health costs but with this latest increase who else are the smokers going to subsidise?

Trott's Trottings !!!!!

Listening to Melbourne Radio chat this morning - it turns out that Victoria is one of the highest taxed states in Australia (trust me to be living in it) apparently tax is somewhere near 48% of your earnings - which means that from the 1st January through to the middle of June you work for the state and after that your wages starts to go towards you and yours....scary or what??? + Melbourne has the most speeding cameras in any state and you are only allowed to go 3 KM above the limit otherwise you are sent a photograph showing your car - where and when - and you pay a very hefty fine!!!

Budget Penalises Ordinary Tax Payers

Guernsey's income tax rules need to change - to ensure businesses are paying what they owe. A businessman says the 2012 Budget penalises the ordinary tax payer with rises in duty on cigarettes, alcohol, fuel and TRP but again big firms can get away without paying their bills.

taken from c&w website

Just been over to Jersey today i had a shock a packet of fags over £6:00 that is dearer than the UK and we will be on a par with the UK . When i was growing up when we had visitors i remember many saying they came here because it was a cheap holiday, not any more you can drink ,smoke , go food shopping and drive cheaper in the UK.

This is shocking!!!