Draft Customs and Excise (Amendment No. 5) (Jersey) Law 200-.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (18/02/2008) regarding: Draft Customs and Excise (Amendment No. 5) (Jersey) Law 200-.

Decision Reference: MD-TR-2008-0020
Decision Summary Title:	Draft Customs And Excise (Amendment No.5)(Jersey) Law 200-		Date of Decision Summary:	31 January 2008
Decision Summary Author:	David Nurse, Director Customs and Excise		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	David Nurse, Director Customs and Excise
Written Report Title:	Draft Customs And Excise (Amendment No.5)(Jersey) Law 200-		Date of Written Report:	28 January 2008
Written Report Author:	David Nurse, Director Customs and Excise		Written Report : Public or Exempt?	Public
Subject: Draft Customs And Excise (Amendment No.5)(Jersey) Law 200-
Decision(s): The Minister for Treasury and Resources approved the draft Customs And Excise (Amendment No.5)(Jersey) Law 200- for debate by the States Assembly and instructed that the draft be lodged au Greffe. The Minister also signed the relevant Human Rights compliance statement for incorporation in the projet.
Reason(s) for Decision: The draft Customs And Excise (Amendment No.5)(Jersey) Law 200- will amend the Customs and Excise (Jersey) Law 1999 so as to substitute paragraph 8 of Part 2 of Schedule 1 to that Law. Paragraph 8 sets out the rate of excise duty payable upon the registration of a motor vehicle. The substituted paragraph contains a new provision for the rate of duty to be determined according to a vehicle’s CO2 emissions. The new rate applies only to light passenger vehicles, (vehicles designed and constructed for the carriage of passengers and comprising no more than 8 seats in addition to the driver’s seat), first registered on or after 1st March 2001 (being the date from which emissions figures for vehicles are available). The rate of duty for all other vehicles will continue to be determined according to the cylinder capacity of the engine. The time when duty is payable on a motor vehicle and the rules for relief and drawback are not affected by this amendment.
Resource Implications: The draft Law will have no implications for the manpower resources of the States. It will however require the development of additional information technology at an approximate cost of £25,000 and minor financial implications related to publicity and revised documentation.
Action required: The Greffier of the States to be requested to arrange for the Draft Customs And Excise (Amendment No.5)(Jersey) Law 200- to be lodged au Greffe 12th February 2008, for debate in the States 1st April 2008.
Signature:		Position: Senator T A Le Sueur, Minister for Treasury and Resources
Date Signed:		Date of Decision: 18th February 2008

Draft Customs and Excise (Amendment No. 5) (Jersey) Law 200-.

Draft Customs And Excise (Amendment No.5)(Jersey) Law 200-

In May 2005, as part of the States of Jersey Fiscal Strategy, the then Finance and Economics Committee working with the Public Services Committee and the Parishes were charged by the States to undertake further research and bring forward for consideration proposals relating to the introduction of environmental taxes and other taxes.

Subsequent to the Fiscal Strategy debate the Council of Ministers brought forward its Strategic Plan for the period 2006-2011, which was adopted by the States in June 2006.

The Strategic Plan included the following environmental commitments and identified the Minister for Planning and Environment as having lead responsibility for their delivery:

To bring forward a package of environmental tax and spend measures by 2007 that will replace Vehicle Registration Duty (VRD) by 2008 and fund key deliverables as outlined in a Sustainable Travel and Transport plan.

To bring forward for consultation and debate in 2007 a package of environmental tax and spend measures.

Detailed research work was undertaken by the Minister for Planning and Environment’s Department and reported to the Council of Ministers which concluded that there was a range of viable environmental taxes, the revenues from which could support the achievement of the strategic objectives for greater waste recycling, enhanced public transport and an energy efficiency program, as well as replacing VRD.

The Council of Ministers’ preference was to consult on a single, simple environmental tax that was capable of raising sufficient revenue to fund both VRD replacement and the stated environmental objectives programme. The Minister for Planning and Environment made full details of this research available to the public and in the first quarter of 2007 consulted on a preferred environmental tax of an annual motor vehicle duty based on vehicle emissions.

The Minister for Planning and Environment was advised of the feedback from the consultation and took note of the many objections to an annual motor vehicle duty. In response to the feedback the Minister for Planning and Environment considered that linking the introduction of an environmental tax to the replacement of VRD had led to confusion and suggested that the two issues be dealt with separately.

As work on environmental taxes was continuing the Minister for Treasury and Resources considered it appropriate not to introduce environmental taxes in the 2008 budget and consequently did not propose a replacement of VRD when he brought his budget proposals to the States in December 2007. However the Minister specifically requested that attention be given to finding a replacement for VRD which could be brought into operation to coincide with the introduction of Goods and Services Tax (GST).

Whilst other environmental initiatives are being examined it is the Minister’s intention to now bring legislation before the States Assembly to allow for a replacement for VRD, to commence at the same time as the introduction of GST.

This replacement, based on proposals by the Minister for Planning and Environment, will for the most part calculate the duty liability with reference to a vehicle’s established CO2 emissions rather than engine size. As is currently applicable under VRD the liability will occur on the date of first registration in Jersey.

The draft Customs And Excise (Amendment No.5)(Jersey) Law 200- will amend the Customs and Excise (Jersey) Law 1999 so as to substitute paragraph 8 of Part 2 of Schedule 1 to that Law. Paragraph 8 sets out the rate of excise duty payable upon the registration of a motor vehicle. The substituted paragraph contains a new provision for the rate of duty to be determined according to a vehicle’s established CO2 emissions.

The VED rate for Light passenger vehicles, (vehicles designed and constructed for the carriage of passengers and comprising no more than 8 seats in addition to the driver’s seat), has been set to broadly approximate the bands that were applicable under VRD, with the exception of the lowest emission vehicles which will pay a zero rate. It is hoped that this measure will encourage more people to purchase lower emission vehicles than did so in 2006 and 2007. If this does not occur then the income from VED may be greater than was the case for VRD, in which case the additional income will be earmarked for environmental measures.

The new rate applies only to light passenger vehicles first registered on or after 1st March 2001 (being the date from which emissions figures for vehicles are available). The rate of duty for all other vehicles will continue to be determined according to the cylinder capacity of the engine.

The time when duty is payable on a motor vehicle and the rules for relief and drawback are not affected by the amendment.

If the States decide to give immediate effect to this draft Law, by acte opératoire, it will come into force on 1st May 2008

The new duty will be called Vehicle Emission Duty or VED.

Whilst the amendment will have no implications for the manpower resources of the States, it will require the development of additional information technology at an approximate cost of £25,000 and minor financial implications related to revising existing documentation.

David Nurse

Director, Customs and Excise

28th January 2008