Guernsey Press

GST at 27% 'could replace income tax'

A HIGHER level of net migration is needed in Guernsey to ensure there is a sufficient working population, the Annual Independent Fiscal Policy Review has indicated.

Published

It said that even with an increasing retirement age, which has been approved by the States, net migration must be more than in recent years, currently standing at about 100 people per year since 2009.

'Projects indicate that a sustained level of net migration of 100 people per year or fewer will result in a long-term decline in the working age population.

'Acknowledging that such projections do of course need to be treated with great caution, a long term decline of this nature would pose a risk to revenues and to economic growth.'

Dr Andrew McLaughlin and Professor Geoffrey Wood said these projections suggested the States might need to consider a much more pro-active approach to encourage people to move and to work in Guernsey if maintaining the working age population was a fundamental economic policy objective.

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