GST still on the table in Guernsey after alternative plan quashed

Guernsey States.
The tax debate continues in the States today. Credit: ITV Channel

The introduction of GST in Guernsey is still on the table after an amendment to cut spending rather than introduce the tax was voted out in the States this morning.

States members voted 24 to 16 against the amendment which would see more done to cut costs, as well as review government and corporation tax, and introduce a new corporate levy.

Policy and Resources want to introduce a GST in Guernsey to help solve the current 'financial black hole' the island is facing.

But Deputy Gavin St Pier and Deputy Heidi Soulsby lodged the proposition which they said was a 'fairer alternative' which involved cuts to government spending instead of introducing GST.

Plans to introduce a 5% goods and service tax has been heavily criticised by islanders, with thousands of people attending a rally last week (22 January) to protest against the tax.

They gathered in St Peter Port on Sunday 22 January to show their opposition to Policy and Resources' (P&R) planned levy that would add 5% to almost all purchases.

The debate on Guernsey's Tax proposals continues.

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