Ministers respond to call to stop taxing pensions

Ministers said about half of pensioners did not pay any income tax

Jersey ministers have responded to a petition signed by more than 4,400 people asking for tax on pensions to be abolished.

Ministers said exempting the pension from tax would not help lower earners since the earnings threshold meant many were already exempt.

They added that if pensions were untaxed, it would mean other groups such as young families would have to pay more in tax or social security.

If more than 5,000 people sign the petition, it will have to be debated in the States Assembly.

Jersey has a tax threshold of £20,000 for single individuals and anyone with income below that threshold does not pay any income tax.

The current full rate old-age pension is £271.81 per week, which is under the threshold as based on that rate it works out at a little over £14,000 across a year.

The allowance was even higher for most married couples and civil partners at £32,000, ministers said.

They said about half of pensioners did not pay any income tax so making the States' old age pension exempt from tax would not benefit those pensioners with the lowest incomes.