Tynwald Members will debate a proposed tax strategy aimed at supporting the objectives of Our Island Plan at the March sitting.
2024-26 Tax Strategy has been published today on the Tynwald Register of Business, where it is available to view and download.
The document describes the tax policies and actions that the Isle of Man will follow for the remainder of this administration to maintain its international position, remain competitive and collect the required levels of taxation.
Funding health and social care services is a particular focus — a new levy is proposed to supply revenue ring-fenced for that purpose along with broadening the Island’s tax base to generate additional funds.
The strategy sets out three strategic objectives, below, along with specific policies and actions that will be pursued until 2026.
- We will raise sufficient taxes to meet our needs through a sustainable and diversified tax system that has flexibility to adjust as and when circumstances change
- We will ensure that the tax system is fair and equitable, that the tax and benefits regimes result in a progressive system and that the tax burden is kept as low as is reasonable
- We will continue to comply with international tax standards and fulfil our role as a responsible and reputable tax jurisdiction
An action plan is included which details milestones that should be met to meet each objective.
Treasury Minister Dr Alex Allinson MHK explained why a newly-defined approach was needed while delivering his Budget speech in Tynwald this morning. He said:
‘It is the first review of the Island’s strategy in relation to taxation since 2016 and seeks to contribute to balancing public sector income and expenditure over the period of the medium term financial plan and also meet the aspirations set out in the Island Plan and the Economic Strategy. This is a challenging task given current fiscal conditions.’
He added:
‘The Tax Strategy provides certainty by committing to retaining key features of the Island’s existing tax system and to not introducing new taxes on capital or wealth. The Tax Strategy has today been placed on the register of business for a debate at the next sitting of Tynwald in March.’
