Guernsey Budget Will Not Include Sales Tax
The
Guernsey States Advisory and
Finance Committee has decided against recommending the introduction
of a sales tax in next year's budget. Although the Committee
agreed that there is a need to broaden the island's tax base
and reduce its reliance on income tax, it wisely decided to defer
consideration of any new broad-based indirect taxes until a comprehensive
review of the island's fiscal policy could be completed. Income
tax currently accounts for about 80% of the island's annual income
of about £240m. Committee Chairman
Conseiller Laurie Morgan said: 'We said last year that perhaps
some form of sales tax would be considered, but it was years rather
than months away. There has been no change on our stance on that
at all. There is a strong argument in favour of broadening the
tax base of Guernsey and Alderney so as to reduce their vulnerability
to a single inherently volatile source of revenue and thus secure
a more stable income stream.' It is expected
that a working party will be established next year to review
Guernsey's fiscal policies.
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