Petitioner 'disappointed' with pension tax debate

Close up of elderly person's hands holding coins. The person is wearing a green code. They have a £1 coin in their hand with a number of other coins in the other hand.
Image caption,

The petition claimed pensioners were subjected to "double taxation"

  • Published

The organiser of a petition into whether islanders should be charged tax on their pensions said he was "disappointed" by the nature of a debate on the issue in the States.

The petition triggered a debate as it was signed by more than 5,000 people, and claimed the current system amounts to "double taxation" for people when they reach pensionable age.

States Members debated the issue on Wednesday.

Petition organiser, Paul Troalic, said: "I knew there wouldn't be a vote but I was optimistic that at least we would have a sensible debate in which people would be interested in giving their views," he said.

The petition claimed the tax was unfair in the context that pensioners would have already paid tax on their lifetime earnings.

With pensions also subjected to tax when people reach pensionable age, this amounts to "double taxation", the petition said.

Mr Troalic said double taxation and claims of 26% net pay "were not really addressed properly" in the debate.

He said members "skirted around the issue" by admitting some islanders were "a little bit hard done by".

Instead the living wage "was more of the issue" at the debate he said, "rather than actually addressing the points that I had made in the petition".

Mr Traolic said "less than half" of the about 45 members present spoke, "which from my point of view is quite disappointing".

He said his motivation was for "pensioners to get a good deal" and he hoped deputy Barbara Ward, who presented the petition to the States "still has an appetite to pursue it it further".

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