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Indirect tax receipts arising from the hospital development (FOI)

Indirect tax receipts arising from the hospital development (FOI)

Produced by the Freedom of Information office
Authored by States of Jersey and published on 01 November 2017.

Request

The hospital development is going to cost over £400 million. Is there an expectation that there would be a tax gain of a percentage of the project and what percentage would be expected. To give a couple of examples, GST paid on goods and services so 5% return on any spend incurring GST. All workers employed should be paying income tax so there is up to 20% per worker there.

Response

There may be indirect tax receipts to the States of Jersey arising from the hospital project but this figure has not been calculated and has therefore not been a material factor in bringing the project to its current status.

Tax receipts may arise from individuals working on the project (if their earnings are sufficient to pay Income Tax) and on-Island businesses who collect GST on the States of Jersey’s behalf. It is not possible to estimate what these receipts may be as too many factors are unknown at this stage.

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