Select a region
Taxi drivers are the latest group to say introducing GST will detrimentally affect their industry and their customers.
The new Head of the Guernsey Taxi Drivers Association has said drivers would not only have to add GST on to their fares, but their charges would increase with GST charges on all of their costs which would mean drivers are earning less than they currently are.
The Tax Review debate is being held next week and despite Policy and Resources urging deputies to look beyond the goods and services tax element of their proposals, that is the one topic which has dominated public engagement on the issue.
Nicki Bessin, the Head of the Guernsey Taxi Drivers Association said the potential introduction of GST has dominated her discussions with fellow drivers who are "very concerned".
“Industry members we have spoken to are very concerned about the potential introduction of GST and the devastating impact it could have on an industry who are still trying recover from the impact of covid and struggling to make a living," she said.
Pictured: Taxi drivers say they are still recovering from the covid impact on their livelihood and GST would be another negative factor for them.
"There are significant factors which cannot be ignored," she explained, clarifying again that drivers don't set their own fares and that unless the States increase the set charges then customers would pay more per mile but drivers won't be earning any more despite having to pay GST on all their maintenance costs and fuel to keep their cars on the roads.
"The cost of implementing and ongoing staffing costs to administer the additional tax, along with the negative impact that consumers will face in light of further additional increase on fares.
"We also can’t ignore, that whilst the taxi fares would increase, the running costs to the taxi industry would rise disproportionately to the fare increase. The increase in goods and services across the board for us as businesses simply would far outweigh the percentage increase on fares. Unlike many businesses across the island, our metered fares are set by the Government. Passing on the relative costs in ways which other businesses can and do, simply cannot be applied to our industry.”
Some taxis have been seen brandishing the red ribbons connected with the 'Say No to GST' campaign ahead of a demonstration this weekend in town and at the States on Wednesday.
Deputy Carl Meerveld is behind that campaign and said that he is "confident that when Deputies see the strength of feeling against this regressive tax, the introduction of GST will be abandoned".
Taxi driver and Guernsey Taxi Drivers Association Spokesman Ian Vaudin agreed with Ms Bessin and said most drivers he has spoken to are concerned about GST being introduced.
“GST is hugely unpopular with both our drivers and their customers; we hope that Deputies will reject this tax and develop alternative ways to fund essential services.”
Parkinson makes the case for corporate reform
Alternative tax package promises greater States savings
Social security changes help poorer families and 'middle Guernsey'
Tax plan includes 5% GST - but P&R says most families will be better off
Why States leaders STILL think GST and tax reform is needed
"Unacceptable" and "damaging" service cuts if States reject GST
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.