The amendment to simply drop GST from the plans was brought by Liam McKenna, who said he was laying it due to the fear that after being introduced at 3% any GST would increase.
‘The danger is the dial will be turned,’ he warned, citing the example of how Tax on Real Property had risen since its introduction.
With the cost-of-living crisis and the housing crisis this was not the time to bring this in, he said, and together the States could come up with a much better solution.
Amendment seconder Simon Vermeulen said businesses and people were already struggling even before the introduction of any GST and he said Policy & Resources had not properly engaged with the public – a comment that was later disputed by Andy Niles, replying to the debate on behalf of P&R.
David Dorrity said the package of reforms needed to be debated in its entirety and the discussion should not be pre-empted by removing one element.
Lee Van Katwyk warned about the rise of artificial intelligence and its potential impact on Guernsey’s economy. He argued that it was too soon to be implementing a whole new tax system in an economy that might not exist in a few years’ time owing to the impact of AI.
The amendment just said ‘no’ and offered nothing, said Deputy Niles, with no alternative source of revenue. ‘It is not a credible plan,’ he said.
The majority agreed, rejecting the amendment by 28 votes to 10, with two members abstaining.