GST cannot be introduced until 2028 at the earliest

Guernsey's States has announced a 5% goods and services tax (GST) will be introduced at the earliest, in 2028 - if it receives backing from politicians next year.

Deputies agreed the proposals for a 5% GST, lower rates of income tax for earnings under £32,400 and social security reform in November 2024.

But work is under way, helmed by Policy and Resources Committee (P&R) member Deputy Charles Parkinson, to review the options on tax reform, which could include changes to corporate tax alongside the GST package.

Estimates from the States show the agreed GST package would raise about £50m a year, and it was originally planned to be implemented by July 2027.

P&R's government work plan, which will be debated by States members in January 2026, sets out that deciding and delivering tax reform should be one of the States' "super priorities".

According to P&R "preparatory work for the proposed tax reform package has been ongoing since its approval by the States in November 2024".

The findings of the tax review sub-committee will be presented to the States between April and June 2026.

While a vote on whether the GST should be applied to food will take place before the end of March, according to P&R.

A majority of the politicians elected at June's general election indicated they were opposed to a GST.

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