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