Jul 05 – YGTV’s Budget Basics

Written by YGTV Team on 05 July 2016.

YOUR CONDENSED BUDGET:

The Chief Minister has painted a bright picture of the Gibraltar economy, telling Parliament that GDP has grown by 7.5% to £1.77 billion, with a surplus of £38.8 million.

Despite the uncertainty presented by Brexit, Mr Picardo says his Government is predicting a conservative budget surplus of £20 million for the next 12 months.

Key Points:

• Minimum wage to rise from £6.25 to £6.28 from August 2016
• Those earning £11,050 will pay no income tax
• Minor increases in all allowances under the Allowance Based System
• No change to the Gross Income Based System
• No social insurance increases (for now)
• Mandatory private sector pensions deferred
• Import duty of 10% on high sugar drinks
• Increase in Government 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
• No increase in water, electricity or fuel
• Duty eliminated or substantially reduced on a wide range of items including eyewear, boat supplies. Duty abolished on sanitary towels and tampons. 

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