The Chief Minister of Gibraltar, delivered his 5th budget speech to the Gibraltar Parliament on 5 July 2016. Europa Trust Company reports on the first British budget following the ‘Brexit’ vote.
Chief Minister (and Minister of Finance) Fabian Picardo presented a positive outlook for the Gibraltar economy while presenting his 2016 budget to parliament. He explained that the 7 sq. km jurisdiction’s GDP had grown by 7.5% to £1.77 billion, with a surplus of £38.8 million. Despite the uncertainty presented by the “Brexit” vote in the year ahead, his government is predicting a conservative budget surplus of £20 million for the next 12 months. Mr Picardo described his budget as the most important budget in a generation
Below are the main points of his budget.
- Minimum wage to rise to £6.28
- All newly established businesses in Gibraltar setting up over the next 12 months will be eligible for a tax credit of £50,000 per annum
- Those earning less than £11,050 will pay no income tax
- Import duty exempted on Marine Sector equipment
- Increases in all allowances under the Allowance Based System
- No change to the Gross Income Based System
- No social insurance increases
- Mandatory private sector pensions deferred
- Increase in govt housing rents by 3% (first increase in 32 years)
- Public Sector pay to rise 2.75%
- Net public debt £345 million or 19% of GDP
While there appears uncertainty in the UK and parts of Europe, Gibraltar is sending a strong message that it is open for business.
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