Business leaders in Guernsey have warned Deputies that it is “too early” to take a Goods and Services Tax off the table.
The comments come after Deputies Liam McKenna and Simon Vermeulen proposed an amendment which would discount GST as an option until at least 2029.
Four organisations – including the Guernsey Chamber of Commerce and Institute of Directors – are now “urging Deputies not to support the amendment”.
A spokesperson said the business community was “clear” before the election that any Deputy opposed to GST “must demonstrate how they would, through alternative means, deliver the revenue or cost savings required”.
“Simply removing one of the principal options without presenting a credible alternative does not provide the clarity or leadership the island needs,” they added.
Spending restraint before new taxes
The spokesperson said it was “too early to take any of the three main options off the table”.
A recent survey for the IoD showed businesses wanted a “balanced approach”, with “spending restraint, plans for economic growth, a review of public services and closer working with Jersey before introducing or increasing taxes”.
The spokesperson highlighted S&P’s recent ‘stable’ credit rating for Guernsey, which was partly-based on introducing tax reforms “including GST”.
“Tax reform has been under discussion for nearly two decades,” they said, so the current tax review should be “allowed to run its course”.
“Our community and businesses require clarity, stability and a long-term solution that secures the island’s public finances,” the spokesperson added.
The other organisations supporting the statement were the Guernsey International Business Association and the Association of Guernsey Charities.
