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Treasury Minister welcomes States tax decision

07 April 2011

"I am very pleased that States Members voted by a significant majority of 39 to 12 to reject a proposal to introduce a higher rate of income tax for higher earners.

"The 20% flat rate of income tax has been the foundation of our post-war success. This vote sends out a message of stability to the global participants in the Island’s main industry.

"The Treasury conducted a wide-ranging consultation on personal taxation last year, after which the Council of Ministers supported the conclusion that a higher rate of income tax would have negative consequences. States Members then approved the 2011 budget.

"That sent a strong and powerful message that we support maintaining the foundation of our economy – our 20% income tax rate.

"I hope this resounding vote ends all speculation that the Island is anything other than committed to the long-standing, standard tax rate of 20%. The message that goes out today is one of certainty, stability and competitiveness.

"With sound public finances, no debt and a firm 3-year plan to bring our budget back into balance, we can now concentrate on attracting high quality, lucrative business and on creating new jobs for Islanders."

Treasury Minister - Senator Philip Ozouf

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