Alderney’s senior politicians have said they will keep working with Guernsey “to achieve the best possible outcome for Alderney and the Bailiwick as a whole” as concerns persist over the future introduction of a goods and services tax.
The GST+ package is currently due to be implemented during the summer of 2027 but a Tax Review Sub-committee is looking at other options as well.
If GST+ is introduced it will include Alderney and Herm, but not Sark.
A campaign against GST has been introduced in Alderney, prompting a response from Guernsey’s Policy and Resources Committee clarifying that the island will have to adopt GST, whether it wishes to or not, if Guernsey does.
Alderney’s Policy & Finance Committee has now confirmed it is continuing to work with P&R to find the best way forward.
“In light of the recent statement from P&R in the media clarifying the financial arrangements under existing legislation, the Policy & Finance Committee will continue to work with its colleagues in the States of Guernsey to achieve the best possible outcome for Alderney and the Bailiwick as a whole,” said P&F.
Policy & Finance Chair, Bill Abel further explained the situation for Alderney – suggesting some lower earners will be better off under a GST+ package than they currently are.
“Whilst many voice their concerns for individuals on lower incomes, there are some advantages to the implementation of GST plus in that regard, including a reduction of income tax from 20% to 15% on the first £30,000 earned,” he explained. “In a practical sense, this means that the affected people will have a greater level of disposable income in their pay-packets.”
He continued: “At the present time the other tax options under investigation have yet to be presented and the timing of any consultation is at this point unknown, but there is concern that any changes to the corporate tax system may be detrimental to the Bailiwick and needs to be considered with great care, particularly in the Finance sector, a fundamental driver of our economy. Various views have been expressed that claim it is solely for Alderney to decide its tax destiny.
“Whilst Alderney has a level of autonomy, and is consulted with, the final decisions are made by the Guernsey Assembly following debate in which our two representatives can make their voices heard on behalf of the Alderney Community. Thereafter, the States of Guernsey will implement any new, or changes, to the Alderney and Guernsey tax system and will collect those taxes via the Guernsey systems.”
The Tax Review Subcommittee is due to share its findings with the States of Guernsey – which includes two representatives of the States of Alderney – next Spring.
A decision will be made after that on whether the Bailiwick adopts a goods and services tax, and at what level, or not.