Widespread dismay is the initial reaction to States pushing for GST

Thousands of leaflets were distributed to households yesterday, and a website was launched to promote understanding around the issue.

The leaflet stated that the Policy & Resources committee believed that a ‘Goods and Services Tax is better’ at plugging the anticipated black hole in government finances.

Early feedback suggested that the States had an uphill battle to convince islanders of that idea.

Retail is expected to be one of the sectors which would be worst hit by a GST.

Guernsey Retail Group chairman Jonathan Creasey said discretionary spend would be hit hard.

‘Certainly it would become more of a barrier to new people or new chains opening in Guernsey, it’s certainly a barrier for customers, and I think it would certainly tarnish St Peter Port as the jewel in the crown. The jewel would start falling off.

‘St Peter Port is often referred to as a barometer of the look and feel of Guernsey and if that’s not looking as good as it really should be because of too many empty units, then GST would not be helpful in addressing that and flies in the face of the ideas around boosting tourism and the blue economy.

‘What impression will tourists get if the Town is empty?’

Mr Creasey was optimistic that a GST was not a foregone conclusion, and he suggested other ideas including social security reform, consideration of the pension pot for States employees, and tackling the housing crisis to grow the local workforce.

However, if GST was introduced he said it would also need to be collected on online goods.

‘GST before the internet and digital world was probably not a bad tool, but in the digital world is it really the most appropriate tool? Isn’t it a blunt instrument now? How would we tax Netflix and Spotify and Amazon Prime and those digital services?

‘For discretionary spend people have so much choice and it’s just going to be another driver for off-island spend when really what we should be encouraging is on-island spend.’

At Citizens Advice Guernsey the potential for a GST was causing worry.

Chief executive officer Kerry Ciotti said she accepted the money had to come from somewhere, but that people were already struggling with the high cost of living.

‘We’re not getting enquiries at the moment. We would get enquiries when it is brought into effect because it’s making poor people even poorer with some struggling to pay to survive and to meet all the bills.

‘Everybody is noticing that their money is not going as far as it did go. Wages don’t seem to be going up in line with inflation, so already people are struggling more now than they have for a few years because of the cost of everything. I can’t imagine what impact tax is going to have on their welfare.’

Mrs Ciotti recommended that people should go to the roadshows and give their views on the matter to the politicians.

. The first roadshow is on Saturday, 1-3pm, at the St Peter’s community hut.