We have issued a joint statement with Institute of Directors and the Guernsey International Business Association on the States’ tax reform policy letter, ahead of the debate on the 15th July.
The statement sets out our shared position: that the decision on tax reform cannot be deferred.
Key points from the statement:
  • We welcome elements of the package that broaden the tax base, phase in GST at 3% rather than 5%, protect lower and middle-income households, and pair revenue measures with public sector savings and a 2030 assurance review.
  • We also raise three questions that remain to be answered: the size of the remaining structural deficit and reliance on uncertain revenue streams, the deliverability of promised savings, and the need for a credible growth agenda to sit alongside.
  • We are clear that rejecting the package without a credible alternative is not a neutral option, and carries its own costs for the island.
The full statement is below and as always, we welcome your feedback and questions.