If it's done right, GST is a 'fair tax'

No government should have its hands tied behind its back when tax options are considered.

The time to debate the merits or otherwise of particular taxes is when they are proposed. It is not right to try to stifle debate on a tax option by attempting to not even have it considered.

It is not possible to avoid GST/VAT in Guernsey without increases in other taxes such as TRP, increases in department charges and massive decreases in services provided by the States. It is simply dishonest to suggest otherwise.

Of all the many jurisdictions in the world, there are a very small number indeed which do not have a form of consumption tax (GST or VAT). Of the three Crown Dependencies, we are the only one without such a tax.

The consequences? Already reduced services, massive department charges and increases in unfair taxes such as TRP, not to mention £300m. of borrowing.

We are in the company of five British Overseas Territories who do not have a consumption tax, alongside four oil-rich gulf states and Brunei.

The others are Macau, Hong Kong, Bhutan, Gambia, Marshall Islands, New Caledonia, Tanzania and Syria.

It is time that our politicians put forward a fully transparent argument as to why we need to have a consumption tax here.

In Singapore the politicians had the courage to give full reasons why a rise in VAT to 7% was essential and one of their compelling reasons was for better care of the elderly.

GST/VAT is in fact a fair tax if it is accompanied by exemptions, higher tax allowances and there is proportionate compensation for the lower paid.

The debate is very simple: a consumption tax, or further increases in other taxes and charges and our services being reduced even further.

TONY WEBBER

anthonywebber@cwgsy.net