States must 'get house in order' before GST launch

7 hours ago

Georgina BarnesBBC News

Deputy Marc Leadbeater says he wants an "evidence-based" approach to tax reform

BBC Marc Leadbeater standing by the marina smiling to the camera. He has short grey hair and close-cropped beard and moustache. He's wearing a navy blue polo neck. — Deputy Marc Leadbeater says he wants an "evidence-based" approach to tax reform

The States of Guernsey needs to properly manage its finances before introducing a goods and services tax (GST), a senior politician has said.

Members have been debating the Policy and Resources Committee's (P&R) tax reform plans - including a 3% GST, tax breaks for lower and middle-earners and higher taxes on some companies.

P&R President Lindsay de Sausmarez previously said she hoped a break in debate, set to resume on 30 September, would help change public perception of the package, adding she hadn't ruled out making changes to it.

Deputy Marc Leadbeater told BBC Radio Guernsey earlier the States should wait until more is known about future savings and tax income before making a decision.

The President of Home Affairs said the message from businesses and the public was largely for the committee to "get your house in order before you introduce a GST".

He said: "We've got income tax receipts that are well behind... cost of living is through the roof, rents are sky high, so there's a lot of pressure financially on families out there anyway.

"So considering that the financial climate and considering the state of government finances and considering the things that are unknown to government at the moment - it's a big ask to put this on people."

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Leadbeater said tax reform was "necessary" but the States needed to do it "in an evidence-led, properly sequenced way".

He said the States could proceed with measures that had clearer financial outcomes and less public opposition including transport taxes, corporation registry fee changes and efficiency saving initiatives.

The deputy said introducing these now could raise money while further evidence for whether or not a GST was necessary was gathered.

Deputy Marc Leadbeater said there had been strong opposition to introducing GST

Large crowd gathered in a town square between historic buildings and trees, with people standing closely together around a small group of speakers in the centre. — Deputy Marc Leadbeater said there had been strong opposition to introducing GST

Leadbeater said he recognised the work P&R had put into its tax reform plans and hoped his amendment could assist it.

He said: "We need to sequence it correctly - I'm not taking anything off the table, I'm not saying let's delay this, I'm saying let's make the decision when we have the information.

"That may cause a bit of a delay but we're sequencing events correctly and I don't think anyone can argue with that."

P&R was contacted for comment.

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