13 May Tax Reform update
GST+ remains firmly on the table, with a Tax Review sub-committee now backing P&R’s ‘workstream’ that includes the goods and services tax.
A States debate in July should decide if the new tax is brought in from 2028.
A Tax Reform update document has been published highlighting some of the concerns around the introduction of GST for the retail sector and others.
The Guernsey Retail Group continues to lobby States Members on behalf of retailers.
The Tax Reform update document can be read HERE.
An explanatory press release issued by the States communications team can be read HERE.
The proposals for ‘workstream 1’ in the above links are key, because that is the concept that the ‘Tax Review Sub-Committee’ is backing.
The sub committee, that was put together to look at alternatives to GST, has said: “While the Sub-Committee has not examined every technical detail, the Workstream 1 package is well developed and has the potential to deliver around £50 million in additional revenue. It includes measures designed to mitigate the impact of a new consumption tax on lower and middle income households. Although implementation would be complex for both government and business, the package offers a credible means of placing public finances on a more sustainable footing in
the near term.”
The GRG will explore what ‘workstream 1’ will entail for retail in more detail and update members accordingly.