GST proposals would leave most islanders better off, treasury data suggests

Treasury figures suggest the majority of people in Guernsey would be "better of" with the introduction of GST, as opposed to the planned 2% increase in income tax for 2025 and 2026.

The data was included in a proposed alternative to Policy and Resources' Budget. The amendment has been put forward by Deputy Peter Roffey and seconded by Deputy Peter Ferbrache.

It includes a secondary option for a 5% GST and combined 15% tax band on earnings up to £3,000, leaving deputies with four options; a temporary increase in income tax, the GST package, both or neither.

While Deputies Roffey and Ferbrache prefer just the GST option, arguing that it would be unwise to let the "tax genie out of the bottle", the amendment allows deputies to choose from the four combinations above.

But if the GST only option is voted on, it would mean that businesses would bear the brunt of raising revenues, as opposed to households.

The treasury predicts that GST revenue per year would be:

• Households, £20 million

• Businesses, £53 million

• Other, £6 million

The treasury predicts that income tax revenue per year would be:

• Households, £40 million

• Businesses, £41 million

• Other, £0

Deputy Roffey says in the amendment: "What is needed is a significant step towards fixing that problem, at least in the medium term, and not a sticking plaster.

"The difference is so striking that it is hard to conceive how anybody could prefer the pure income tax route for raising additional revenue".

It will be the fourth time that GST has been debated this political term, having been voted down three times before.

A debate on the Budget will be held next month.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...