Income tax 20p rate will form part of review
Wednesday 28th November 2012, 5:00PM GMT.
THE future of the 20p income tax rate will be considered as part of a wider review, the chief minister has revealed.
Deputy Peter Harwood (pictured) said the review would see Treasury and Resources and the Social Services Department work together to look at both tax and social insurance contributions.
He said the rate of income tax – long established at 20p – would be just one of the areas that would have to be looked at. The review could furthermore explore whether there should be a ‘flat rate across the board or a progressive tax rate’ based on earnings, he suggested.
‘I think this is the first time in recent years we have tried to look at income tax and social insurance issues as one,’ said Deputy Harwood. ‘It is really an attempt to consider the weight of burden of tax and social insurance on the population and where the burden may be best shared – most fairly shared.’