Guernsey Budget Will Not Include Sales Tax

Tax-news.com

12 December 1999

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.

.

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

To manage your mailing list preferences, please click here »