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Duty on alcohol sales could be frozen but inflation linked or above increases have been suggested for TRP, petrol and cigarettes in the 2025 Budget.
While P&R says this is a sign they have listened to the public by "consciously avoiding changes to multiple taxes" there will still be increases to pay.
The budget proponents say some things are not increasing in value in “real” terms, but thanks to inflation, stagnant wages, and other global issues, there will still be an impact on peoples' wallets.
The latest figures from June this year shows that the latest annual percentage changes in the RPI inflation indices sits at 5.3%.
That means your usual shopping basket of goods costs 5.3% more than it did a year ago.
Deciding to set inflation linked increases on duty means those fees will increase by 3.2% - the predicted rate of inflation for 2025 - but no more than that, under P&R's proposals.
For motorists the 2025 Budget is a mixed bag.
For HVO (Hydrotreated Vegetable Oil) or biofuel users, great news, you’re in for some savings as P&R would like to see an increase in the discount offered from 10p to 30p when compared to Diesel.
For petrol motorists, there’s an increase in Motor Duty in line with inflation, that’s the 3.2% figure again.
Although we’re potentially seeing a freezing of alcohol duty, tobacco has been hit with an RPI increase as well as another 10% in line with health strategies looking to decrease the amount of smokers on island. Tobacco has also increased by that amount as that comes into force immediately on publication of the budget.
There’s also big movements in the housing side of things, with some sweeping changes to TRP - this includes P&R plans to shift the TRP thresholds, in line with inflation (3.2%).
During a budget briefing earlier this week, Deputy Lyndon Trott said this would “assist first time buyers”.
Essentially it means those buying at the lower end of the market will pay less, those buying more expensive properties would pay more.
The budget itself states that the “reduction in document duty on an average house purchase” should mean those entering the market could see a rate cheaper by “more than £1,000”.
This would also see the creation of a new “Document Duty Threshold” for properties worth £5,000,000 or more.
Deputy Trott insists that the budget has been designed to "protect the most vulnerable" and that "80% of those lowest income households will be better off, or marginally affected".
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