Speculation rife for 6% GST, excluding food

AN INCREASING number of States members are expecting Policy & Resources to propose a goods and services tax again – this time at 6% but excluding food.

P&R president Deputy Peter Ferbrache greeting one of the hundreds who protested outside the States when GST was debated in January. (Picture by Luke Le Prevost, 32340274)

Outside this week’s States meeting, several committee presidents and other deputies have made unattributable claims that P&R has already decided to put forward ‘GST minus food’ as an option in another debate on tax and spending expected in September.

But P&R president Peter Ferbrache denied that his committee had finalised such a proposal.

‘We haven’t made a decision on that specific idea – 6% excluding food,’ he said, immediately after the States adjourned yesterday evening.

‘I’m not being coy. I’m not saying it won’t come like that. I’m just saying we haven’t made a decision to come with 6% excluding food.’

Deputy Ferbrache added that it was ‘likely’ that GST would be debated by the Assembly again before the end of the year.

P&R said in a statement that its next round of tax and spending proposals would be informed by this week’s Government Work Plan debate.

‘It is not true to say any of the options have been finalised or agreed and there is considerable further work to do in the next few weeks before the committee reaches that stage,’ it said.

‘The funding options will be accompanied by proposed options for the capital projects the States prioritises.

‘It’s absolutely essential that whichever option the States favours is financially sustainable.’

P&R has projected a shortfall in States finances of about £100m. a year by 2040.

Earlier this year the States rejected five packages to raise additional revenue.