Guernsey Rules Out Goods And Services Tax

by Jason Gorringe, Tax-News.com, London

09 May 2016

Gavin St Pier, the successor to Guernsey's Chief Minister, has said that the Government will now rule out introducing a goods and services tax in the island.

In April 2015, Guernsey's Parliament rejected proposals for the introduction of a five percent Goods and Services Tax (GST) by 28 votes to 18.

Speaking on BBC Radio Guernsey, St Pier ruled out GST, stating: "Four years ago I opposed GST as an additional tax. During the last term I supported it as part of a redistribution of tax, but the States firmly rejected that. I absolutely unequivocally accept that decision – GST is off the table."

The possible introduction of GST was proposed in the Personal Tax, Pensions, and Benefits Review, to raise revenues worth GBP50m (USD74.1m). The measure has met with strong local opposition, especially from the retail sector, as Guernsey's lack of a value-added tax is seen as a key appeal to tourists. At that time, alternative proposals like a carbon tax were put forward.

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