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GFSB Budget Summary 2024
The Chief Minister’s 2024 Budget Address was delivered on 1 July 2024. The Chief Minister announced that forecast GDP for 2023/2024 is £2.91 billion, a 5.8% increase on the prior year, and that a small surplus of £1.9m is estimated for 2023/2024. He also stated that average estimated inflation for 2023/2024 is 2.6%, a figure which drove many of the increases announced.
Key announcements
The following were amongst the budget measures delivered:
- Corporate tax will rise from 12.5% to 15%.
- Social insurance caps (both employer and employee) rise by 5%, to £53.50 per week for employers, and £39.00 per week for employees (exact amounts subject to confirmation).
- Temporary increase of 2% in personal tax rates announced in 2022 Budget has now been reversed (1% of this had already been effected in last year’s budget).
- Minimum wage will increase from £8.60 to £8.90 per hour.
- Electricity to increase by 2.6%.
- Government charges to increase by 2.5%, rounded to nearest 50p.
- Import duty on vehicles will be as follows:
- Electric/ hydrogen vehicles 0%
- Full/ plug-in hybrids 5%
- Mild hybrids 10%
- Import duty of 5% introduced for pleasure craft (capped at £35,000).
- Introduction of £25 fee per import duty refund (from 1 January 2025).
Pollution levy
An annual levy of £520 was announced in respect of every motor car over 10 years old (except classic vehicles). This fee would have been £1,560 per annum for commercial and public service vehicles for more than eight passengers (i.e. excluding taxis), over 10 years old.
Following a public outcry, the measure was reversed and a consultation has been announced.
More information
The Chief Minster’s full budget address can be found at: https://www.gibraltar.gov.gi/press-releases/the-budget-2024-chief-ministers-address-4702024-10043
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