A PETITION seeking to exempt old age pensions from taxation will be considered for debate in the States after it was signed by 5,000 people.
The petition created by Paul Troalic argues that since pension contributions are not deducted from gross pay for taxation, taxing those pensions when they are received amounts to double taxation.
Yesterday, almost 5,150 Islanders had signed the online petition, which means that it will be considered for a debate in the Assembly.
However, ministers have already signalled their opposition to Mr Troalic’s suggestion that a tax exemption should be made for pensions.
A response to the petition, issued in July, argued that such a move would not benefit those most in need.
“The generous tax allowances ensure that, even though the old age pension is taxable, pensioners on low incomes who receive only the old age pension do not pay any income tax.
“In fact, approximately 50% of pensioners do not pay any income tax. Making the States old age pension exempt from tax would not benefit those pensioners with the lowest incomes,” ministers said.
