It’s now understood that Policy and Resources will once again propose GST as one part of a plan to fund major capital projects and finance the government as a whole.
It’ll be put before deputies as one option out of three, the other two being various combinations of borrowing and reductions in capital expenditure.
While the context behind the decision remains unknown, the GRG continues to maintain that if GST is introduced it’ll result in many retailers closing down.
“We have not yet seen details of the new GST proposals, but having canvassed local retailers, the Guernsey Retail Group has noted significant concerns, particularly from many of the smaller outlets,” said Korinne Le Page, Head of Retail Development.
“We believe up to a quarter could close, which would be very harmful for St Peter Port and other centres and naturally reduce the choice for local consumers.”
Pictured: Korinne Le Page.
“Our belief is that such a tax completely ignores the value retail brings to the Island,” continued Ms Le Page.
“We have recovered well from the pandemic – our shop vacancy rate stands at 6.95%, a consistently improving figure from 13.5% from back in Quarter 1, 2021 – and we also employ 3,779 people, the third largest sector on the Island.”
The Guernsey Chamber of Commerce has also given a short response to the news that GST will be back on the table.
“If we know that if we carry on as we are, then Government will not have the money to deliver essential services, let alone all the other amenities that make Guernsey a great place to live and do business,” said Steve Rouxel.
“So, something needs to change. We look forward to reviewing the policy paper when it is released.”