Businesses that move into the emerging medicinal cannabis industry risk having all of their income taxed at the higher 20% rate if current rules are not changed, a Scrutiny panel has warned.
A report by the Economic and International Affairs Panel has also suggested that any profits made by the developing sector "may be minimal for several years" because of the high investment costs. Jersey growers are trying to carve out a niche in the emerging international market for medicinal cannabis, with the substance becoming increasingly used and licensed for healthcare purposes across the world.
It has been decided that the industry should be taxed at the 20% top rate of corporation tax, while most companies pay the lower 10% or 0% rates under Jersey’s zero-ten system.
Read the complete article at jerseyeveningpost.com.