Guernsey Press

GST will hit the vulnerable most

I BELIEVE a few observations re the proposed introduction of GST in Guernsey might be worth an airing.

Published

In a small island community with a population of 60,000-ish, it will undoubtedly hit the most vulnerable portion of the community hardest.

Introducing it at a time when the local retail section is already struggling for its existence does not seem the most logical thing to do and adding to the administrative burden of all local businesses from one man upwards is something we could well do without at the moment.

The setting up of the infrastructure to administer a new form of tax by a States that patently cannot efficiently run its existing operations, e.g. Income Tax and others, does not seem too bright and how long will it take to implement? Will it also be plagued with a multitude of IT problems and most important of all, how much will it cost? How will we deal with the problem of imported goods, some UK vat paid and some exempt and how, if at all, will due monies be collected?

Clearly a level of 5% will not be cost effective and the nature of the tax makes it very easy to increase without reference to the electorate, one of the things that makes it attractive to politicians seemingly bankrupt of any other ideas.

It seems to me that a lot more detailed investigation is needed before going down this route.

Also it did seem rather odd for Policy & Resources to call an open meeting for the very day they released the information with the minister responsible for its formulation unavailable for some time.

TONY WEAVER