Liberal Vannin has criticised a failure to adjust tax thresholds
The political party Liberal Vannin is urging the treasury minister to ensure that any new levy, expected to replace the higher rate of income tax in the next Budget, is 'progressive' and does not disproportionately impact working families.
Details of the levy are expected to be released soon, with the revenue generated remaining ringfenced for the health service, as has been the case with this year's two percent tax increase.
While the party supported the initial tax rise to fund essential services, it has criticised the failure to adjust tax thresholds and protect lower-income earners.
Ahead of the levy's introduction, Liberal Vannin is calling for Treasury to ensure it applies to those benefiting from the current tax cap and considers the inclusion of a tax on capital or wealth.
It continues to ask for an assessment of the effects of raising or abolishing the tax cap entirely and to review National Insurance rates and thresholds for all workers.
Chair Paul Weatherall told Manx Radio's Christian Jones that little is known about the specifics of the levy:
In response to a recent Tynwald written question, Treasury Minister Alex Allinson confirmed the future funding of Manx Care remains under consideration following the increase to the higher income tax rate in this year's budget.
Dr Allinson confirmed the additional revenue was the tax increase was included in Manx Care's budget for this year.
Douglas North MHK John Wannenburgh also asked how Treasury plans to make the funding sustainable after the current financial year.
Dr Allinson said considerations for Manx Care and other parts of government are being assessed, and will be included as part of next year's budget.
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