The idea comes from Deputy David Goy as part of his alternative to the proposed tax package, due to be debated by the States next month.
His concept of a ‘participation incentivisation tax’ has three strands. One of these is what he calls a ‘premium asset levy’ on luxury goods. One such asset would be large boats, but Mr Guillemette says that would prove disastrous for Guernsey’s blue economy.
‘Any additional tax on leisure boating will kill the local demand for boats, whatever their size.
‘We’ve already seen increases in mooring fees of over 50% since 2023 and many owners have ceased boating, with others trying to sell their craft. The yacht brokers have full books with boats for sale and the market is flooded.’
The GBA president was speaking personally because he has not polled his members on the idea, but he also questioned the fairness of deciding which craft should be deemed luxury items purely on the basis of length.
‘A new 27-foot rib [rigid inflatable boat] could be worth more than a much larger 15-year-old sailing yacht. Who decides what is a luxury item anyway? Does this include motorhomes, cruises, antiques, long-distance holidays? Why shouldn’t anyone who has worked hard and saved their hard-earned cash have the right to spend their money on something nice anyway?’
Mr Guillemette said Deputy Goy’s proposals might be OK for somewhere like Singapore, with millions of inhabitants, but not for a little island of 65,000 people.
He said it would be far simpler to increase income tax if required and to stop spending money on unnecessary projects.