A taxing problem

Even most of those who accept the need to introduce GST in Guernsey are not exactly enthusiastic about the prospect.

But many islanders still aren’t convinced there really is a need, as highlighted by some of the views expressed in today’s opinion pages.

They query if enough has been done to cut costs, identify savings and prioritise expenditure. However, Policy & Resources insists that even if more can be done, it will not only mean a reduced service but the amounts raised will be merely a drop in the ocean in comparison to the sums needed.

Some suggest that raising the rate of income tax would be a simpler solution. But, according to P&R, raising it to the level required would make the island anti-competitive compared to other jurisdictions.

One of the main concerns is that, once GST has been implemented, it will be too easy for future Assemblies to raise the rate whenever they find themselves struggling to fund any ‘nice to haves’.

The potential bureaucratic costs involved, both for local businesses and for the civil servants administering the scheme, is also frequently cited.

Of course, the team behind the tax proposals will have analysed these issues and explored any alternative options, so why are they still struggling to get their message across to some of the electorate?

Having already failed to get their plans through the States the first time around in February, only time will tell if P&R will have done enough to win over their colleagues this time.