Another States vote on GST

Guernsey's politicians look set to vote again on introducing GST.

Deputy Peter Roffey is bringing an amendment to the Budget.

It will include a 5% percent goods and services tax from 2027 as part of a package of measures to raise revenue.

It is similar to proposals, previously rejected by the Assembly, from the previous Policy and Resources committee.

He says it would be fairer than the two year, 2% rise in income tax being proposed by Lyndon Trott's P&R.

Guernsey's senior committee has proposed a temporary 22% rate to tackle an estimated £43m deficit.

The higher rate would generate an extra £34m in revenue in both 2025 and 2026.

Deputy Roffey argues the income tax hike will take money from those who can least afford it, and make Guernsey less competitive drawing people to work in the island.

"I had assumed that we were going to park the whole question of how to raise significant more revenues until 2026, after the last failure to agree anything in the assembly.

But now they are proposing this 2% increase in income tax, I'm really putting this (GST) forward and saying this is an alternative route to go down.

I think islanders won't like the idea of GST, but I think they won't like the idea of their income tax bills going up either.

If they take the time to research it and really look into it, I think they will far prefer my approach, although I understand that the headline of GST is going to create a negative reaction."

Previous attempts to stem losses with GST have failed, and led to the Assembly voting out the previous P&R.

The Budget is due to be debated in the States in the week of 5 November.

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