Jersey's had a £160 million tax windfall that will be used to help to pay for the island's new hospital.
The government has received much more from the new Pillar Two global minimum corporate income tax than it expected.
The 2027 Budget, announced this week, reveals the tax receipts from multinational companies that make more than 750 million euros - which now have to pay 15% - are worth far more than estimated.
Read: Jersey approves changes to taxing large companies
Previous predictions has put the revenue it would generate at around £50 million.
We're told, based on the position in September, the government 'expects to receive at least £160 million above the income forecast for 2026.'
Ministers warn such temporary or uncertain windfall sums should not be used for day-to-day or recurring spending.
The money will go towards building the new hospital at Overdale, therefore reducing the amount that would have been taken from reserves for the £700+ million facility.
Any more Pillar Two windfalls will be ploughed into the special fund ringfenced for future capital investments, and the currently depleted Stabilisation Fund meant to protect the island from economic shocks.
Economic advisers have repeatedly warned the government to replenish savings.
Busy Bees nursery at Jersey Leeward to close
Haut du Mont trial: 'Procedures, instructions, and safeguards were ignored'
Jersey Police raids in drugs and domestic abuse crackdown
Haut du Mont trial: Island Energy had 'toxic culture' leading up to explosion
Survey reveals islanders’ concerns over misogyny and body image
Man allegedly attacked after separate 'physical confrontation'
Haut du Mont trial: 'Risk' taken not to do pressure test 'utterly reprehensible'
Make your mark at town gallery
Comments
Add a comment