Case studies re-published in continued GST push

Friday 29 September 2023

Individualised case studies have been re-published by P&R as they try and convince the community that some less affluent households will be better off if GST is introduced.

The debate on the Funding & Investment Plan is drawing closer, with the Policy & Resources Committee hoping to convince the States that a goods and services tax is needed to pay for the island's running costs and infrastructure.

With a GST affecting everyone, P&R has re-published more than 20 case studies that were drawn up prior to the original Tax Review debate, showing what the proposals would mean for different households on different levels of income.

The case studies can all be read HERE or seen in the gallery below. 

With an anti-GST protest attracting thousands of people earlier this year, and a strong anti-GST stance remaining apparent in the community, P&R is hoping to encourage people to look at what the new charges may mean for them, alongside the other proposed changes to social security and benefits. 

“Understandably many people really just want to know what does the tax package mean for them," acknowledged Deputy Peter Ferbrache, the President of P&R.

"There are a number of elements to the package, including improved tax allowances, a reduction in income tax, the introduction of social security allowances, increases to pensions and benefits and the introduction of a Goods and Services Tax. It isn’t straightforward to work out what that means for each person when you put those altogether.

"Some people have asked me if we can provide an online ‘calculator’ but given the complexities of each household’s individual tax affairs, that would be a very costly and complex online program to develop.

"Nonetheless, we really want to help provide people with the information they are asking for, and so I hope the 20-plus case studies will serve to give people a good idea of the sort of effect the tax package would have on their household.”

While the case studies were published earlier in the year, they remain accurate.

P&R says the case studies represent a wide range of households, and look not only at various levels of income but also other relevant factors such as how many members of the household there are, their ages, and whether they rent or own their home.

Each case study is based on a real household and can be seen HERE or in the gallery below: