28 Sep 95.4% of retailers express ‘moderate’ or ‘high concern’ over tax reform plans
Approximately 95% of retail businesses surveyed have expressed either moderate or high concern about the possible effect of GST.
More than two-thirds of those who responded to the survey carried out this summer by the Guernsey Retail Group said they were highly concerned about the future viability of their business.
Significantly, almost nine in ten respondents described their present trading performance as stable, fairly strong, or very strong. The concern is therefore not confined to businesses that are already struggling.
The GRG said: “These findings represent businesses’ expectations and concerns, rather than a prediction that GST will directly cause those outcomes. Nevertheless, they provide a serious warning about the potential cumulative effect of introducing an additional challenge at a time when businesses are already facing rising employment and property costs, freight pressures, recruitment difficulties, fragile consumer demand, and intense competition from off-island/online operators.”
The findings demonstrate the breadth and strength of concern about the possible introduction of GST:
- 67.7% said they would be highly concerned about the future viability of their business;
- 27.7% said they would be moderately concerned that GST might negatively affect their business, and
Overall, 62 of the 65 businesses surveyed, or 95.4%, expressed either moderate or high concern.
Survey responses also raised concerns extending beyond the headline rate of GST.
These included the costs of changing accounting and point-of-sale systems, additional bookkeeping and administration, pressure to increase prices or absorb lower margins, and the diversion of resources away from employment, training, business improvements, and future growth.
The survey, conducted by the Guernsey Retail Group, received responses from 65 unique local businesses of varying sizes and operating across all categories of retail.
To protect confidentiality, the Guernsey Retail Group will not release individual submissions, identifiable comments, or commercially sensitive information.