Editing Economy of Jersey (section)

== Fiscal policy ==
{{Main|Taxation in Jersey}}
Jersey is fiscally independent from the UK. UK public money is not ordinarily spent in the island, and Jersey residents do not pay tax or national insurance contributions to [[HM Revenue and Customs|HMRC]]. As the UK is responsible for Jersey's defence and international representation, the cost of Jersey to the British taxpayer could be seen at around £55 million, though this is a notional cost; it is unlikely that, if Jersey were independent, that money would be saved on costs to the armed forces. The States make, upon agreement with Westminster, a contribution to the costs of its relationship in the form of a territorial army on the island.<ref name=":7">Dreisin, A; Evans, A; Phelan, J; Pragnell M. [https://www.jerseyfinance.je/media/PDF-Research/JERSEY'S%20VALUE%20TO%20BRITAIN%20-%20SUMMARY%20REPORT.pdf Jersey's Value to Britain: Evaluating the economic, financial and fiscal linkages between Jersey and the United Kingdom (Summary Report)] {{Webarchive|url=https://web.archive.org/web/20220210151617/https://www.jerseyfinance.je/media/PDF-Research/JERSEY%27S%20VALUE%20TO%20BRITAIN%20-%20SUMMARY%20REPORT.pdf |date=2022-02-10 }}. October 2016 [Accessed 10 February 2022]. Capital Economics Ltd. for Jersey Finance.</ref>

=== Tax system ===
Jersey has a 'simple and stable' tax system, which does not change much over time. This is reflected in States policies, which call for a 'low, broad, simple and fair' system.<ref name=":11">{{Cite journal |last=Boleat |first=Mark |date=2023 |title=Jersey's Public Finances |url=https://boleat.com/materials/jerseys_public_finances_20230107.pdf |journal=Jersey Studies |access-date=2023-01-15 |archive-date=2023-01-15 |archive-url=https://web.archive.org/web/20230115184615/https://boleat.com/materials/jerseys_public_finances_20230107.pdf |url-status=live }}</ref> The country collects income tax on its ordinary residents, with allowances and exemptions available for both low-income and very high-income residents (the latter through the 2(1)(e) policy).<ref>{{Cite web |title="We should be letting in more high-net-worths to Jersey - not fewer" |url=https://www.bailiwickexpress.com/jsy/news/we-should-be-looking-attract-more-high-net-worths-jersey-not-fewer/ |access-date=2023-01-15 |website=Bailiwick Express Jersey |language=en |archive-date=2023-01-15 |archive-url=https://web.archive.org/web/20230115184618/https://www.bailiwickexpress.com/jsy/news/we-should-be-looking-attract-more-high-net-worths-jersey-not-fewer/ |url-status=live }}</ref> Corporate income tax is charged through the zero-ten policy, through which most businesses do not pay any corporation tax.<ref name=":42">{{Cite web |last= |first= |date= |title=Moving to Jersey: Money and tax |url=https://www.gov.je/LifeEvents/MovingToJersey/LivingInJersey/Pages/MoneyTax.aspx |access-date=2021-02-12 |website=Government of Jersey |archive-date=2021-01-14 |archive-url=https://web.archive.org/web/20210114225016/https://www.gov.je/LifeEvents/MovingToJersey/LivingInJersey/Pages/MoneyTax.aspx |url-status=live }}</ref> Jersey does not have inheritance, wealth, corporate or capital gains tax.<ref name=":42" />

{{Lang|fr|Impôts|italic=no}} are charged on road fuel, vehicles, alcohol and tobacco and are similar to UK [[Excise|excise duties]].<ref name=":11" />

=== Social protection ===
The social protection system in Jersey is known as Social Security. In 2004, Jersey spent less than any EU country on social protection at 12.3 per cent of GDP, though the island's per capita GDP was higher than the European average.<ref name=":10" /> Social security contributions are funded by both employees and employers on monthly earnings.<ref name=":11" />

=== Criticism ===
Jersey is considered a 'tax haven' by some sources (e.g. the [[Tax Justice Network]]),<ref name=":63">{{Cite web |date=2017-11-05 |title=Portrait of a tax haven: Jersey |url=https://taxjustice.net/2017/11/05/portrait-tax-haven-jersey/ |access-date=2021-06-05 |website=Tax Justice Network |language=en-US |archive-date=2021-05-18 |archive-url=https://web.archive.org/web/20210518095507/https://www.taxjustice.net/2017/11/05/portrait-tax-haven-jersey/ |url-status=live }}</ref> but this label is contested.<ref name=":82">{{Cite web |date=2021-05-16 |title=Jersey's Chief Minister clashes with White House over Joe Biden's demands for global tax reforms |url=https://inews.co.uk/news/jerseys-chief-minister-clashes-white-house-joe-bidens-global-tax-reforms-1001870 |access-date=2021-06-05 |website=inews.co.uk |language=en |archive-date=2021-06-05 |archive-url=https://web.archive.org/web/20210605192538/https://inews.co.uk/news/jerseys-chief-minister-clashes-white-house-joe-bidens-global-tax-reforms-1001870 |url-status=live }}</ref> Jersey has a long history of tax avoidance and smuggling due to its special constitutional status.<ref name=":032">{{Cite web |last= |first= |date= |title=Life in the United Kingdom: Jersey Supplement |url=https://www.gov.je/SiteCollectionDocuments/Life%20events/ID%20Citizenship%20Test%20-%20Jersey%20Supplement%20-%2020190304.pdf |access-date= |website=Government of Jersey |archive-date=2021-07-30 |archive-url=https://web.archive.org/web/20210730163310/https://www.gov.je/SiteCollectionDocuments/Life%20events/ID%20Citizenship%20Test%20-%20Jersey%20Supplement%20-%2020190304.pdf |url-status=live }}</ref><ref name=":63"/> The EU's tax haven blacklist<ref name="auto1">{{Cite web |title=Taxation: EU list of non-cooperative jurisdictions |url=https://www.consilium.europa.eu/en/policies/eu-list-of-non-cooperative-jurisdictions/ |access-date=2023-09-12 |website=www.consilium.europa.eu |language=en |archive-date=2021-05-06 |archive-url=https://web.archive.org/web/20210506140816/https://www.consilium.europa.eu/en/policies/eu-list-of-non-cooperative-jurisdictions/ |url-status=live }}</ref> does not include Jersey in the list dated February 2023, though has in the past<ref name="auto1"/> and the list has been criticised for leaving out jurisdictions such as Jersey.<ref>{{Cite web |last=Express |first=Bailiwick |title=WATCH: Jersey in EU's sights in plan to tighten tax haven 'blacklist' |url=https://www.bailiwickexpress.com/jsy/news/jersey-eus-sights-plan-tighten-tax-haven-blacklist/ |access-date=2021-05-06 |website=Bailiwick Express |language=en |archive-date=2021-05-06 |archive-url=https://web.archive.org/web/20210506003818/https://www.bailiwickexpress.com/jsy/news/jersey-eus-sights-plan-tighten-tax-haven-blacklist/ |url-status=live }}</ref> The Government of Jersey and UK Government have argued that Jersey is a cooperative jurisdiction and the local finance industry rejects the tax haven label.<ref>{{cite news |last=Molony |first=James |date=2009-03-04 |title=Jersey among cooperative finance centres |publisher=Reuters.com |url=https://www.reuters.com/article/uk-jersey-transparency-interview-sb-idUKTRE5235QJ20090304 |url-status=live |access-date=2012-10-12 |archive-url=https://web.archive.org/web/20141213050315/http://www.reuters.com/article/2009/03/04/uk-jersey-transparency-interview-sb-idUKTRE5235QJ20090304 |archive-date=2014-12-13}}</ref><ref name=":7"/><ref>{{cite web |title=House of Commons Hansard 9 Sept 2013 |url=https://publications.parliament.uk/pa/cm201314/cmhansrd/cm130909/debtext/130909-0001.htm#13090914000005 |url-status=dead |archive-url=https://web.archive.org/web/20200127065402/https://publications.parliament.uk/pa/cm201314/cmhansrd/cm130909/debtext/130909-0001.htm#13090914000005 |archive-date=2020-01-27 |access-date=2017-08-31}}</ref>

=== GST and VAT avoidance ===
A value-added tax system is in place known as Goods and Services Tax (GST), which is set at 5 per cent. Some items are zero-rated - but not food - and imported products below £60 are exempt.<ref>{{Cite news |date=2024-06-18 |title=Paying GST for online shopping and imported goods |url=https://www.gov.je/TaxesMoney/GST/GSTCustomers/pages/declaringpaying.aspx |archive-url= |archive-date= |access-date=2024-06-18 |work=gov.je |language=en-GB}}</ref>

The difference between the GST and UK/EU VAT systems previously led to VAT avoidance facilitated through the island. This included fulfilment by [[Play.com]] and [[Amazon (company)|Amazon]], among other large retailers.<ref name=":52">{{Cite web |title=EU to close LVCR loophole completely |url=https://jerseyeveningpost.com/news/2015/06/29/eu-to-close-lvcr-loophole-completely/ |url-status=dead |archive-url=https://web.archive.org/web/20210114080140/https://jerseyeveningpost.com/news/2015/06/29/eu-to-close-lvcr-loophole-completely/ |archive-date=2021-01-14 |access-date=2021-01-12 |website=jerseyeveningpost.com |language=en}}</ref> [[Low-value consignment relief]] provided the mechanism for [[VAT-free imports from the Channel Islands]] to the UK. In April 2012, the EU closed this loophole, leading to the closure of many island businesses and the loss of a number of jobs on the island.<ref name=":52"/>