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Budget 2017: fuel hike branded "backdoor" tax

Budget 2017: fuel hike branded

Tuesday 08 November 2016

Budget 2017: fuel hike branded "backdoor" tax

Tuesday 08 November 2016


Treasury Minister Alan Maclean defended his plans to push up fuel tax by 2p a litre, claiming there will be environmental benefits in the rise.

The Minister was speaking to the Corporate Service Scrutiny Panel, and said the planned increase in tax in the 2017 Budget will not necessarily be converted into a rise at the pump, although he admitted that was "likely" to happen.

The Budget 2017 will be debated in mid-December, and drinkers and smokers, with cigarettes facing an 8.1% increase, or roughly 43p on a pack of 20, and alcohol going up by around 5% - more than three times the current inflation rate. Users of hand-rolling tobacco face a whopping 10% increase.

And motorists will be sharing some of their pain, with fuel also set to go up - the Treasury Minister wants to add 2p to a litre of unleaded, an increase of 4.2%, in a measure which he hopes will bring in an extra £921,000.

In total the Budget 2017 proposals are forecast to bring in an extra £2.53million next year for the States, rising to £2.95million in each of 2018 and 2019 - but despite that, the Treasury is still forecasting a deficit (not including depreciation) of £43million in 2016, dropping to £13million in 2017, before it climbs back into the black, reaching a surplus of £56million in 2019.

Yesterday Senator Alan Maclean said: "There are environmental considerations to be taken into account and this is not a particularly large rise. The 2p a litre increase might be absorbed by the retailer. There are significant margins in the road fuel market and it will not necessarily be passed on to the motorist, but we know what is likely to happen.

"The fuel tax is significantly lower than others and we do need to increase revenues."

Panel Member, Deputy Simon Bree said the fuel tax rise is an example of 'backdoor' taxation. 

He said: "If there is no benefit to the user, effectively this is an increase in indirect taxation."

But the Treasury Minister replied: "No, we don't feel this is particularly aggressive." 

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Posted by L Brindle on
"the 2p a litre increase might be absorbed by the retailer, but we know what is likely to happen" ? What's the matter Alan, having trouble getting the words out ? Let me help.....the rise WILL be passed on to the end user. There, better now ?
Posted by Davey West on
In the same token as back door petrol tax increases, a massive keep it quiet increase on small business has just happened.
Your window cleaner, plumber pays £150 a year to register with the JFSC. It has been admitted that the share for the cost of administration costs is only £35 paid to the JFSC. The rest unbelievably gets grabbed by the the Jersey Tax Department. The small trader and every other business that register's annually has just had an increase of 40% or £60 making the annual return £210.00 for what ? Nothing more than stealing money from the pocket of the people.

The UK registration fee is £13 on line or £40.00 by post per annum.
It is noted that Senator Bailhaches new department has just employed more new staff costing £400,000. Per annum time to close one or several of the many offices abroad.
Do the council of muppets have any idea on how to run a sweet shop let alone an island economy ?
Posted by david forde on
Who does this clown think he is fooling? Tax is a Tax is a Tax! As for the so called green ones. Those are the most fictitious of all disingenuous taxes! In one word. Bull.
Posted by Des Pyper on
I wonder if they would tell us what and how this rise will help the Environment as the Establishment trump this out all the time because you cannot measure it.... Convenient???
Posted by Chris P Bacon on
Easy targets for tax increases. How about a bit more creative thinking here. How about enforcement on stopping retailers charging the UK VAT to local consumers on top of the local GST. This in turn would allow for a higher rate of GST, raising the income to the islands coffers but also a reduction in consumer prices overall. A win win situation? Or shall we forever and a day accept that UK retail branches based in Jersey refuse to stop charging UK VAT?
Posted by June OKeeffe on
we all full of back chat but what do we do to get rid of them!
Posted by The old git Git on
Well said all the above comments.
They're just trying to re-coup the money that has been wasted in the past and have a few more quid to blow on unnecessary projects.
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