Chief Minister announces support measures for local businesses impacted by Transaction Tax

The Chief Minister announced a package of measures to help businesses through the initial impact of the Transaction Tax.

These include tax deductions, relief from rates and a moratorium on rent increases.

The support measures apply to all taxpayers who are fully up to date with their statutory obligations, who employ fewer than 250 persons.

A tax deduction will be available during the first 90 days of implementation to counter the immediate impact of the Transaction Tax

Qualifying taxpayers in the retail and wholesale sectors will be entitled to relief from business rates for the first 6 months.

To support employment and recruitment, there will be a waiver of vacancy registration fees for 36 months.

The Chief Minister said there will also be a moratorium on rent increases in respect of premises for retail shops or stores for wholesale of goods, which will apply for the first 24 months. 

Where rent increases contravene the moratorium, the Government will introduce a surcharge on the landlord's rental income from the affected premises.

Finally, fuel supply companies will now pay the standard corporate rate of tax. 

Fabian Picardo said he expected all companies to pay their fair share, including bunkering companies, especially after this favourable change in treatment.

The Chief Minister said the Government has sought preliminary analysis to ensure that none of the measures breach State Aid Rules, but stressed should they be found to be incompatible, then they will be modified to the minimum extent necessary.