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Gibraltar Budget 2017

Gibraltar Budget 2017 Image

At the Parliamentary session of 26th June 2017 the Chief Minister delivered his Budget Speech described as prudent and cautious alongside optimism and investment.  

Brexit Highlights  

• Negotiations being finalised for Gibraltar’s access to the UK post Brexit

• “EU Settled” status will apply to resident EU nationals post Brexit

• 26 new financial services applications and 4 new gaming licence applications since 23/06/2016

Economic Highlights 

• Average inflation 2.6%

• Forecast GDP £1.91bn for 2016/17 (+7.5%)

• GDP per capita ($92.8K) would be ranked 4th in world per IMF measures

• Net public debt 16.75% of GDP

• Budget surplus 2016/17 at £75.8m (prior year £38.8m)

• Record employment at 27,073 jobs

Taxation Highlights - Business

• 10% company tax rate unchanged

• Tax receipts up 23.8% on prior year

• Import duty on high value items (>£25,000) stored in bonded warehouse eliminated

• Minimum wage up £6.45 p/h (£6.28) from 1 August 2017

• No increase in water and electricity

Social insurance  

• Rates unchanged

• Reformation of social insurance system under review

Taxation Highlights - Indivdual  

• Persons with assessable income of up to £11,150 (prior year £11,050) will pay no income tax

Allowances Based System (ABS) 

• Allowances increased by inflation across a wide range of categories

Gross Income Based System (ABS)

• No change

Trusts & Pensions  

• Mandatory private sector pensions being examined

Category 2 / HEPSS

• No change

Property tax  

• No change

Stamp Duty  

• No change

Import Duty  

• Zero duty on classic cars

• Gold bulletin duty reduced to 1% (6%)

• Duty reduced or eliminated on a wide range of consumer goods including handbags, prams and sporting equipment

Environmental Measures  

• Doubling of duty on plastic bags to 10p

• 3p per litre increase on diesel for cars

Click here for the full CHIEF MINISTER'S GIBRALTAR BUDGET ADDRESS 2017

Information supplied by: Almanac Limited, 30/2 Cornwall's Lane, Gibraltar, www.almanac.gi,  +350 200 42250

Contributed by Mike Nicholls