BUDGET MEASURES 2018
Tobacco Licence Fees increased with immediate effect.
The fees for a New Wholesale licence increased, from £1,000 to £20,000;
Renewal of a wholesale licence increased from £300 to £10,000;
Retail Licence increased from £150 to £5,000;
Renewal of Retail Licence increased from £50 to £200;
New Retail Stores Licence increased from £50 to £5,000;
Renewal of Retail Stores Licence increased from £15 to £5,000;
New Transportation Licence increased from £50 to £250;
Renewal of Transportation Licence will increase from £20 to £250; and
Tobacco Import Permit will increase from £150 to £1,000.
As from today, duty on cigarettes went up from £13 per carton to £14 per carton and duty on rolling tobacco increased by £15 from £45 per kilo to £60 per kilo. The import duty on Waterpipe Tobacco rose from £15 per kilo to £45 per kilo.
From midnight tonight, Duties on the importation of Diesel increased from 25p per litre to 37p per litre. Duties on the importation of Diesel premium increased from 23p per litre to 34 per litre, on the importation of Unleaded 95 increased from 29p per litre to 35p per litre and on the importation of Unleaded 98 increased from 29p per litre to 34p per litre.
Electric vehicle incentive
By July 1, 2030 every vehicle registered in Gibraltar will have to be a hybrid at least. Diesel hybrids will not be registrable in Gibraltar as from that date in 2030. Both of these measures apply to new and second hand vehicles being registered for the first time in Gibraltar as from the 1st July 2030.
As from July 1, 2035, Gibraltar will only allow the registration of fully electric vehicles where the propulsion of the vehicle does not in any way rely on the internal combustion engine, whether fuelled by diesel or unleaded petrol.
For the next 36 months, any individual tax payer who installs a mechanism for the electric charging of a vehicle in their home or in a parking space or garage owned by them will be able to deduct the first £2,000 of cost against their tax liabilities.
With immediate effect duty on diesel engines under 1495cc will be an additional 10% on top of the duty that would otherwise have been payable on importation.
Cashback on Hybrids reduced to £250 per vehicle and on full electric vehicles increased to £2,500.
A new cashback incentive of £150 for full electric motorbikes and an incentive of £200 for electrically assisted bicycles without a throttle where the electric engine cuts off at a speed of 25 kph.
Paper v Plastic
Import duty on disposable paper products such as paper straws, plates, cups, disposable paper bags and sacks has been eliminated and duty on their plastic disposable equivalents raised to 200%. The duty on biodegradable plastic bags has been halved.
Duty on cider, shandy and fermented beverages increased to 21p per litre. Duty on bottled mixtures of beverages of an alcoholic strength by volume not exceeding 15% has increased by 17per litre from 33p per litre to 50p per litre.
Duty on American Whiskey and Bourbon is increased to £2 per litre. Duty on sparking wines and Champagne increased from 69p per litre to £1 per litre.
Educational electronic equipment
Duty on educational electronic equipment pay eliminated.
All instruments and appliances used in the medical, surgical, dental and veterinary sciences, including sight testing equipment no longer attract import duty.
High street reductions
The duty on hand bags is eliminated.
Fees and other charges
A fee of £50 per vehicle valuations carried out by Customs.
Landing certificates increased from £10 to £ 20 per certificate.
Duty eliminated in respect of bingos where they are organised by a registered charity and the proceeds are to be used for the purposes of that charity. Duty on bingos is also abolished if organised for and by the residents, on a not for profit basis, in certain establishments.
Utilities and Business Rates
No increase in electricity and water charges. General Rates payable by businesses remain unchanged and discounts for the early payment of rates will continue to apply.
In the retail and distributive trades and in respect of catering establishments the discount granted for early payment is increased from 30% to 50%.
The statutory minimum wage increased by 4.5% or 30p an hour to £6.75.
Public sector pay rises
Public sector pay rises by the lower of 2.5% of the individual’s pay rate or 60p an hour. This 60p per hour cap on the pay rise will kick in on basic salaries over £46,000 per annum.
Social Insurance Contributions
An increase of 10% to Social Insurance contributions. Employee contributions will increase at a maximum by £2.75 per week from £27.50 to £30.25; married women’s contributions will increase by £1.45 per week from £14.50 to £15.95; employer’s contributions will increase at a maximum by £3.65 per week from £36.5 to £40.15; and self-employed contributions will increase at a maximum by £3.35 per week from £33.5 to £36.85.
Income Tax Allowances
With immediate effect, taxpayers with assessable income of £11,200 or less will be brought out of the taxation system altogether and will pay no income tax.
With effect from July 1, 2018, Personal Allowance increased from 3,300 to £3,385; spouse and civil partners allowance increased from £3,300 to £3,385; one parent family allowance increased from £5,435 to £5,575.
The Nursery Allowance increased from £5,160 to £5,290; the child allowance increased from £1,135 to £1,165 and the child studying abroad allowance increased from £1,290 to £1,325.
The Dependant Relatives Allowance, where the relative is resident in Gibraltar, increased from £301 to £325 and where the relative is resident outside Gibraltar, increased from £210 to £215.
Blind Allowance increased from £5,155 to £5,285 and medical insurance allowance increased from £5,155 to £5,285.
Measures in respect of affordable housing
With immediate effect the sale of any property sold as an affordable home for and on behalf of the Government in the last four years, will attract a new Special Stamp Duty. For the period until ten years have expired from the original purchase of the property by the original purchaser – of 7.5% of the total sale price. Calculated with regard to the property sale price and any other payment passing from the Purchaser to the Vendor whether in respect of fixtures, fittings or any other payments whatsoever connected with the transfer of the property.
The Special Stamp Duty will not apply in circumstances of a forced sale, including in cases of marriage or relationship breakdown, which circumstances will be certified by the Government’s Land Management Committee and administered by Land Property Services for the Government.
The Special Stamp Duty will also not apply if a family moves to a larger property as a meritorious upgrader to another, newer, Government affordable housing estate.
The Special Stamp Duty will not apply to the sale of any part of the Government’s equity sold where the Government has retained a share of the equity in the property.
The Christmas Lottery Draw
This year’s Christmas Lottery first Prize will be £1 million pounds. Double the number of tickets available last year will go on general sale on Wednesday.
Pic by Dominic Lipinski/PA Wire