Introducing GST could be 'catastrophic' for Alderney

The introduction of a Goods and Services Tax (GST) would be 'catastrophic' for Alderney, according to the island's Chamber of Commerce.

The potential 5% charge has been heavily criticised but Guernsey States say they need to fill a £85 million hole in the finances brought about by the pandemic and an ageing population.

Alderney's Chamber of Commerce say that introducing GST would have a huge impact on the island, including:

• A negative effect on those who are low earners or on fixed incomes

• Added burden on businesses, especially smaller ones

• The creation of another civil service department to administer it

• An expensive tax to collect and monitor

• A potential import increase and possible drop in buying items on island

Members of the Chamber want to look at other potential avenues to raises taxes which include:

• A more serious look at corporation tax, especially around the Zero-10 tax

• The possibility of having a capital gains tax on the profits from the sale of second residences within the Bailiwick via a rates system

• Reintroduction of a vehicle road tax via an online portal

A meeting will be held at Island Hall this evening (16 March) at 7pm to discuss the issue.