Chamber signals GST package support as it calls for certainty

Monday 28 October 2024

Guernsey Chamber of Commerce says it is time to move beyond short term thinking as it responds to this year’s Budget.

Policy & Resources has made an income tax hike from 20% to 22% for the next two years the centrepiece of its proposals, but it is facing challenges from deputies that instead back a comprehensive GST-package and others that want to see spending slashed.

Stephen Rouxel, President of the Chamber of Commerce said: “Guernsey’s future depends on responsible, forward-thinking measures – and to fund our future, a whole host of changes are necessary, increasing income tax alone will not fix this problem.

“A short-term tax increase may be necessary to address immediate pressures facing Guernsey’s finances to deliver the vision of government, it is ultimately a temporary fix. This approach does not address the underlying structural issues affecting our economy. What is needed is an expanded and diversified tax base to secure sustainable funding for Guernsey’s future for short, medium and longer term infrastructure to help grow the economy.

 “We need Government to set aside their differences and come together to agree a set of measures that will allow the much-needed investment in infrastructure and services.

 “When we surveyed our members last year, they were supportive of Option 3 which is similar to the amendments lodged by Deputy Peter Roffey and Deputy Peter Ferbrache, which includes GST. It appears that the breadth and depth of this amendment addresses most of the respondents' concerns regarding tax reform.

“It is time to move beyond short-term thinking.”