Ministers say no to GST in Guernsey

Tuesday 06 January 2015

Politicians in Guernsey say they don’t need to bring in GST – but are considering a cap on the amount of tax, Social Security contributions and charges they can take from the public as a constraint on the cost of government.

The announcement, which came yesterday afternoon, was aimed to defuse recent controversy in the Island. A major tax debate aimed at balancing the books has provoked protests and debates, with many people in Guernsey worried about following Jersey by setting up a sales tax.

The final draft of the new tax plan will be put together in the next couple of weeks, but ministers say they will do a separate piece of research on the implication of a sales tax.

Treasury Minister Gavin St Pier said: “The joint boards believe that in the long term there may be a place for a GST-type tax in our tax system, and it should therefore remain on the table as an option.

“But at the same time we recognise that there would be a lot more work required before the States could be asked to make a definitive decision.

“For example, we would need to do more work to understand the true costs for the community, business and government of its introduction, and to have a clear view as to what steps could be taken to mitigate any of the impacts of its introduction.”

Housing Minister Dave Jones added: “I am particularly supportive of the joint boards’ proposals to introduce a cap on the total amount of tax, social security and other charges which government can take from islanders.

“Having that kind of constraint is a really important discipline to ensure we live within our means.”