States of Guernsey votes to pave the way for income tax rises and GST

Guernsey States building on the States annual budget
Guernsey's politicians are working their way through around twenty amendments to the 2025 annual budget. Credit: ITV Channel

Guernsey's politicians have voted today (6 November 2024) - for the first time - to potentially introduce a Goods and Services Tax in the island.

The proposed amendment to Guernsey's 2025 budget, voted through by deputies, would see the income tax rate rise from 20% to 22% for two years and "develop systems, processes and legislation" for GST.

However, politicians still have to vote through the overall budget to officially introduce these changes.

Politicians decided to pass the amendment by Policy and Resources without debate, by 20 votes to 15.

This decision comes a day after Guernsey's Chief Minister, Deputy Lyndon Trott, warned a proposed income tax rise is a "necessary" but not "long-term decision".

The island's most senior politician said that there had been no organised protests about the income tax proposals, and he felt that public opinion was shifting while GST and Income Tax were being compared.

Also in the budget debate today, Deputy John Dyke's amendment to reduce States spending by £27.8 million was defeated by 11 votes to 25.

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