Guernsey Press

Goods and sales tax 'not a done deal', says minister

A GOODS and sales tax is 'not a done deal', the Social Security minister has said.

Published

After the release of a report by the island's leading business groups condemning the tax's introduction in Guernsey, Social Security minister Allister Langlois, pictured, hit back at some of its central arguments.

'GST is not a "done deal",' he said. 'Neither, as outlined in the principles and issues document published in early July, is it the only option being investigated. Other measures, such as increasing rates of domestic TRP, are also being considered.

The report said GST – which potentially could be introduced in 2019 at 5% – was the 'worst tax' that could be introduced, and stated it would undermine the tourism industry, retail sector, potentially increase joblessness and even tip the island into recession. Low income families would be disproportionately hit by the tax, the report argued, because it would be placed on essentials such as electricity and food, which are not discretionary spends.

But Deputy Langlois took issue with the report's findings because it looked at GST in 'isolation', he said.

The Treasury and Resources and Social Security boards – which are leading the review – knew it 'may not be a popular option', said Deputy Langlois.

Sorry, we are not accepting comments on this article.