With the findings of a Tax Review panel due to be published soon, the CGi is backing a new suggestion to look at increasing Income Tax, rather than introducing GST.

Last week, Deputy Lee van Katwyk told the Guernsey Press that would be his preference – saying a temporary increase in Income Tax would help to pay for the island’s public services in the short term.

He plans to lodge a requete suggesting Income Tax goes up when the States debate the introduction of the GST+ package this summer.

The Confederation of Guernsey Industry said it supports that proposal, reiterating its long held view that “a time limited adjustment to income tax is a pragmatic, efficient and fair way of addressing the island’s future funding gap”.

Garin Dart, CGi Chair, said it would be much fairer than introducing a goods and services tax.

“We agree with Deputy Van Katwyk, as our preference has always been for modest rises in the levels of income tax,” he said.

Pictured: Garin Dart, Chair of the CGi.

“It can easily be increased or decreased without the costs and burden of setting up a new department for GST+, which we believe would also have a detrimental effect on the economy.

“The CGi accepts that income tax alone is not the silver bullet for resolving all of the Island’s financial issues, but it is the most efficient and equitable way for collecting additional revenues and would start to tackle the shortfall immediately.

“The mechanism for collection is already in place, so changes can easily and quickly be implemented. We also welcome the flexibility for any increase to be introduced for a set period of time and then changed or removed, as required.”

Mr Dart also stressed, on behalf of the CGi, that tax reform must be accompanied by measures to reduce the States’ expenditure and improve efficiency across the public sector.

Pictured: Concerns over who might replace Deputy St Pier on P&R and who will act as the island’s Revenue lead going forward are worrying some deputies.

The States plans for introducing GST+ were due to be debated in June – but that has already been pushed back to July, with some deputies now arguing that the debate should be held later in the year.

Express understands there is growing concern among some States members that Deputy Gavin St Pier’s plans to resign from P&R and stand for re-election is too much of a distraction.

Deputy St Pier and others have been looking at all areas of tax reform since the current States were elected last summer.

The Tax Review Panel were due to share their findings with P&R in April before they were published, ahead of the planned summer debate.

Express understands the findings of the review will be published soon.