Guernsey politicians to explore 'other options' before introducing GST

Politicians overseeing Guernsey's Tax review say they will explore all options for raising additional revenues from businesses, before introducing a Goods and Services Tax (GST). It comes after the government warned it needs to find an extra £85 million a year to meet the demands of the ageing population.

The Policy and Resources Committee says £10 million will come from corporate taxes and go towards the £85 million shortfall per year.

The Committee will continue to explore more options for raising the additional money from businesses, in order to give the community confidence that it has "exhausted all options and investigated every opportunity" as part of the island's Tax Review.

An additional independent analysis into corporate tax opinions for Guernsey will be commissioned, taking into account the nature of international tax standards.

The Policy & Resources Committee’s Treasury lead, Deputy Mark Helyar, said: “I promised last year that we would leave no stone unturned before committing to any final recommendations in relation tax changes.

"A package of tax reforms which includes a Goods and Services Tax combined with social security reform to increase allowances and improve pensions and benefits, still remains the best option on the table for raising the significant revenues needed.

"But we are still listening and examining every other possible option to see how we can minimise the impact of raising additional revenues on the public and the wider economy."

Other options being considered by the States include reviewing the Bailiwick's population, looking into maximising the proportion of the local population that is economically active and looking into options of cutting costs across States Committees.

"Of course the Tax Review should also look at corporate income tax and how we tax companies more widely. However, it is critical that we don’t lose business, and ultimately lose jobs, to other jurisdictions.

"Having some detailed independent work to separate out which options are plausible, and which are not, can only help this crucial discussion about how we safeguard the future of essential services.”