Guernsey Budget 2022: Tax rise on fuel, alcohol and cigarettes

Taxes on fuel, alcohol and cigarettes will go up in Guernsey next year to make up for a deficit, the government has announced.

The States is today (5 October) publishing its 2022 Budget.

It says the shortfall is not as high as predicted, despite the pandemic and lockdowns, but it still needs to increase income.

The committee's proposing that the excise duties on alcohol, motor fuel and real property (TRP) tariffs are increased by 4%, which comprises 2.5% as the amount necessary to maintain their value in real-terms, and 1.5% to raise additional revenues.

• An increase of 4% in the excise duty on alcohol, increasing the duty on a pint of standard-strength beer by 2p to 52p;

• An increase of 4% in the excise duty on motor fuel, increasing the duty by 2.9p per litre to 76.3p per litre;

• An increase of 4% in commercial TRP tariffs; and

• An increase of 4% in domestic TRP tariffs.

The other budget measures proposed are:

• An increase of 7.5% in the excise duty on tobacco products, increasing the duty on an average packet of twenty cigarettes by 44p to £6.26

• A 2.5% increase in Personal Income Tax Allowances, increasing an individual’s allowance by £300 to £12,175

• Continuation of gradually increasing the commercial TRP tariffs for the general Office and Ancillary Accommodation category to the same tariff as the other Office and Ancillary Accommodation categories, resulting in an increase of a further 23% - £6.25per unit.