Industry group asks for alternatives to GST

The Confederation of Guernsey Industry (CGi) has called on the government to look at alternatives to a goods and services tax (GST).

The industry group has suggested a range of different measures to address any financial shortfall, including an increase in income tax.

It said that, if GST was introduced, it would place additional pressure on households and small businesses, and other options should be assessed before any decision was made. Confederation chair Garin Dart also said GST was "regressive and would have a "negative impact on the economy".

The States of Guernsey is due to vote later this year on what the future of tax will look like, including if GST plans should go ahead.

The CGi said it believed government spending reviews, an increase in income tax, rises in company registration costs and corporate taxes, along with the introduction of deferred pensions, should form part of a broader package of measures.

Dart said: "Our preference has always been for modest increases in income tax, which can be easily administered, adjusted and also removed as required.

"[The] Policy & Resources [Committee] is in a difficult position and no-one wants to see any rise in their personal costs.

"But income tax – especially for higher earners – is by far and away the most efficient and equitable way of collecting additional revenues."

Dart also questioned how much modelling had been performed in respect of any costs that were index-linked, as "these would be pushed higher still as a result of higher inflation driven by the States policies".

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