The States of Guernsey are pressing ahead with plans to diversify the island’s tax base.
A Tax Sub-Committee has been established to examine options on corporate tax, while a separate group is developing detailed proposals for the introduction of a Goods and Services Tax (GST-Plus) package. Both workstreams will run in parallel, with proposals due to be debated in the States in the first half of 2026.
This twin-track approach is welcomed by the Chamber, as it demonstrates the government’s commitment to taking a final decision on tax reform before the end of Q2 2026. There is widespread recognition that Guernsey faces a structural deficit and that action is needed to put public finances on a sustainable footing. Chamber supports a broader, more balanced tax base that reduces reliance on income tax while safeguarding Guernsey’s long-term future.
The GST-Plus package under review includes changes to social insurance allowances, a new 15% tax rate for income up to £32,400, policy decisions around exemptions for food and charities, and inflationary adjustments to means-tested benefits. The package is expected to raise around £50 million annually, once costs are factored in.
Chamber attended the first GST plus workshop, which saw strong engagement from industry and was a very useful and informative session. The message from government was clear: implementation planning must begin now, given the two-year lead time required. Business can expect to be fully involved in shaping the practicalities — from compliance and customs processes to IT and customer education.
Chamber will continue to engage closely with both the GST-Plus and corporate tax workstreams, ensuring the business community’s views are heard.
Further updates, FAQs and a contact form are available at gov.gg/taxreform.
