Introduce a tax on open market housing to help balance budget
GUERNSEY has been my home for nearly 14 years and it has been a privilege to become part of the local community here which is close-knit, friendly and welcoming. There is however no doubt that Guernsey faces a fiscal deficit that must be solved as soon as possible. The population needs to get value for the money spent on public services but I do not believe we should be considering cutting services which are essential for the poorest in our society. While we should focus on efficiency gains we do need to accept that tax increases are inevitable. The question being, where to raise more tax income?
I would like to suggest we consider an additional alternative clear and simple model, one that is employed across the world – a property tax on high value residences and in particular on open market housing. The rate could be a 1% tax on the value of open market houses. In other jurisdictions, tax on housing is often higher. Therefore, while an individual may not be earning any money in Guernsey and therefore paying no tax on the island, if they live in open market housing they will be contributing through paying property taxes that go towards everything from healthcare to schooling.
In Guernsey, now is the time for those of us – myself of course included – who live in open market property, to make a greater contribution to balance the budget. My proposal would be that this new tax is introduced on open market housing as soon as possible. This is a very simple tax to administer and looking at various tax structures all over the world and their consequences – both intended and unintended – I feel it is the fairest and most efficient way to raise the tax take in Guernsey.
GUY HANDS
Founder of Terra Firma Capital Partners