Guernsey Marine Sector Up In Arms Over Fuel Tax Plans

by Jason Gorringe, Tax-News.com, London

13 October 2006

Guernsey's marine traders are seeking to get their voices heard by the States authorities ahead of a decision later this month on whether to do away with motor tax and increase fuel duties, it has emerged this week.

According to a Guernsey Press and Star report, the Guernsey Marine Traders' Association suggested that such a move, if implemented, would represent "economic suicide" for the Island's marine sector.

The GMTA's president, Ben Mahy revealed that the Association had been assured that marine fuel would continue to benefit from tax concessions in the 2007 budget.

"The only fair and safe way of protecting this business is to provide lower duty marine petrol and marine diesel, which could be dyed at point of sale – a process that the marine retailers would be more than happy to adopt and control," the Guernsey Press quoted him as proposing.

Separate reports have suggested that the government is somewhat aware of the concerns of the marine sector, with Treasury Minister Lyndon Trott acknowledging, according to the BBC, that a higher fuel tax might deter yachtsmen from visiting the Island.

He reportedly went on to add, however, that although marine diesel may retain its exemption, petrol-driven craft may not be so lucky.

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