Tynwald receives Treasury's tax strategy

22 politicians voted in favour with 8 against

Politicians have spent the afternoon discussing a new tax strategy which Treasury believes highlights a commitment to supporting a 'financially responsible' government.

The 12-page document sets out the key objective of hoping to 'balance' public sector income and expenditure between now and 2026.

You can find it HERE.

Treasury admits taxation may change in its annual budgets to meet demands from the Isle of Man's population.

This year a two percent increase to the higher rate of income tax was implemented which it's said will be 'ringfenced' for health services.

In Tynwald today (19 March) Douglas North MHK David Ashford attempted to have the document thrown out entirely as he demanded Treasury create a 'meaningful' plan instead. 

His plan failed but the proposals were subject to significant criticism from MHKs including Joney Faragher, Jason Moorhouse, Claire Christian and John Wannenburgh:

Following a lengthy debate Treasury Minister Alex Allinson addressed many of their concerns but batted away much scrutiny in the process.

He agreed cost saving measures across the government 'must be delivered' but only in a 'measured' way and said he believes his strategy is 'honest', amid previous accusations that he was imposing 'stealth taxes'.

Dr Allinson began his response by thanking his political colleagues for a 'decent' debate:

Fifteen members of the House of Keys voted in favour of receiving the strategy document with eight against.

In the Legislative Council seven MLCs voted in favour with none against.

Normally there would be nine members of LegCo but due to the retirement of the bishop there is currently no representative sitting in the court.

You can find the full voting details HERE.

Treasury will now be expected to produce an annual report on progress of the strategy in subsequent department plans.