MercoPress. South Atlantic News Agency

Gibraltar Chief Minister upbeat about economic prospects for 2010

Peter Caruana announced 10% across the board corporate tax rate

Gibraltar is not just having a relatively good level of economic activity during global recession and financial crisis, but is further positioning itself well to move into a significant new growth phase when the global economy and markets recover.

That was the view expressed by Gibraltar’s Chief Minister Peter Caruana in his address to the Chamber of Commerce. He revealed that the Government continues to actively study the desirability, viability and feasibility of a new locally owned Bank.

Caruana said that the next tax year will see the introduction of the new 10% across the board corporate tax rate which is already available for new business start ups.

“As the developed world increasingly bears down on zero tax jurisdictions, we expect our conventional but competitive tax model, coupled with Gibraltar’s many other attractions as a business location, to fuel further economic growth and development of business,” he said.

The Chief Minister also said that the Government will remain committed to Gibraltar’s focus on selective licensing, high but reasonable standards of regulation and a pre- occupation with guarding Gibraltar’s jurisdictional reputation.

This “together with our EU status and post crisis emerging new global consensuses on many issues on which Gibraltar is already well placed, will continue to serve us well, especially in financial services and online gaming.”

Caruana indicated that although the Government does not undertake public investment programs to stimulate or grow the economy, there can be no doubt that the Government’s significant pipeline of projects “will provide an important boost to many sectors of our economy, and will add significantly to its growth”.