Deputy proposes tax reform package with no GST

A Guernsey politician has proposed an alternative package of tax reforms to the ones put forward by the Policy and Resources Committee, with no goods and services tax (GST).

Deputy David Goy said his Productivity Incentivisation Tax plan was built around three new taxes to make sure "those with the greatest means are already contributing proportionately".

They include levies on empty or under-used properties and high net-worth individuals who pay "little or no income tax", and a tax on luxury items such as high-performance vehicles and private aircrafts.

It comes in response to plans put forward by Policy and Resources (P&R) for measures such as a GST, to plug an estimated £50m funding gap.

The P&R plan also includes the re-introduction of motor tax, creation of lower income tax bands and the extension of the 10% corporate tax rate.

It described the package as "a balanced, pragmatic and proportionate response to the financial challenge" the island faces.

In his proposal, Goy asked whether all existing capacity for contribution within the current system was already being fully captured.

"The proposal explores whether additional revenue can be secured before resorting to broader measures that impact the wider population," he said.

Goy said a GST would "fall most heavily on middle-income household".

"Combined with inflation and rising living costs, they place additional pressure on families already feeling the squeeze.

"Corporate tax increases risk penalising the productive sectors of our economy and increasing the cost of doing business weakens Guernsey's international competitiveness."

He added: "Rather than addressing systemic procurement failures, inefficiencies, or major project overruns, blanket departmental reductions force frontline services to do more with less.

"The result is declining service standards, reduced public confidence, and a gradual erosion of quality of life."

He has asked for feedback on his proposals before 1 July to allow for revisions before it is submitted on 7 July.

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