Above-RPI tax bid on alcohol and cigarettes is stubbed out
A MOVE to increase the taxes on cigarettes and alcohol above the rate of inflation was roundly defeated after the States heard that it would be a ‘body blow’ to the hospitality industry and would unfairly hit the elderly and poorer people.
Deputy Peter Roffey proposed raising the so-called ‘sin taxes’ and ploughing the money into raising the tax allowances, which are the thresholds from which people start paying tax.
He said that increasing the tobacco duty in particular, would act as a deterrent.
‘Tobacco does remain one of the greatest threats to the health of our community.
‘Firstly it causes a range of vile, debilitating and distressing diseases.
‘Secondly it remains one of the biggest causes of premature death in Guernsey.
‘And thirdly it costs the taxpayer of Guernsey millions every year.’
A report was released yesterday showing that lung cancer is still the biggest cancer killer in the Bailiwick.
The Roffey amendment would have increased the personal tax allowance by £75 from the £11,875 in the Budget to £11,950.
He highlighted how Guernsey’s income tax thresholds had been allowed to fall behind Jersey, the Isle of Man and the UK, a situation which he called ‘indefensible’.
In Guernsey someone earning less than £50,000 pays more income tax than an equivalent earner in the UK.
Deputies piled in to criticise the amendment.
In his maiden speech, Deputy Simon Vermeulen said it was detached from reality and the hospitality industry had only been just about coping even before Covid.
‘Just think about our pubs, think about our restaurants, think about the hotels, many of our hotels are closed at the moment and they’re not doing that for fun.
‘Many of our pubs, our dear old pubs that we love to go to when we can, many of the pubs are operating with skeleton staff at the moment and they are really up against it.’
Much of the debate focused on who Guernsey’s smokers really were.
Deputy Lindsay de Sausmarez, who seconded the amendment, questioned the ‘romantic notion of the working person with a pint in one hand and a fag in the other’.
She referred to health data which showed that 13% of the population smoked, and they were not necessarily all on low incomes.
Deputy Peter Ferbrache gave that suggestion short shrift.
‘Generally the person that smokes most as a percentage of our population are the elderly population, now whether we like that or not, that is the truth.’
Deputy Helyar encouraged his colleagues to go and speak to a few ordinary people in their lunchtime to acquaint themselves with the truth.
Summing up, Deputy Roffey countered that research showed that only 2% of Guernsey’s smokers were over-75 because so many elderly people were now ex-smokers.
The bulk of smokers, he said, were the under-45s, and in particular a lot of young people who ‘think they’re immortal’.
Despite that his amendment was comprehensively lost.
It was split into two votes, and increasing the tax allowances lost by 28 votes to 10; and increasing tobacco and alcohol duties lost by 32 votes to 6.
