The Chamber of Commerce, Institute of Directors, the Guernsey International Business Association and the AGC said that the business community sent a clear message to candidates ahead of the election that any deputy standing on a platform to rescind GST must demonstrate how they would alternatively deliver the revenue or cost savings needed to strengthen the island’s public finances.
‘Simply removing one of the principal options without presenting a credible alternative does not provide the clarity or leadership the island needs,’ they said in a joint statement. ‘It is too early to take any of the three main options off the table.’
It said that businesses were calling for spending restraint, plans for economic growth, a review of public services and closer working with Jersey before introducing or increasing taxes.
Meanwhile the global ratings agency S&P reaffirmed Guernsey’s stable outlook while anticipating the introduction of tax reforms, including a GST, from 2028.
‘Now is not the moment to remove GST from consideration,’ said the four groups.
‘A formal review process is already underway and should be allowed to run its course. The scheduled debate in June provides the appropriate forum for informed decision-making based on evidence and analysis. Calls to simply “say no to GST” must be accompanied by a credible and sustainable alternative that addresses Guernsey’s long-term public finance challenge. This amendment does not set out such an alternative.
‘Tax reform has been under discussion for nearly two decades. The structural issue remains unresolved, and continued uncertainty carries its own economic cost. Our community and businesses require clarity, stability and a long-term solution that secures the island’s public finances.’
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