28 Sep Letter to deputies ahead of Tax Reform debate resuming
The Guernsey Retail Group has renewed its call for deputies to place greater emphasis on economic growth as they resume debate on the Policy & Resources Committee’s tax reform proposals.
In a letter shared with all States members on the eve of debate, the GRG highlighted the importance of ensuring that any measures to secure Guernsey’s long-term public finances are matched by policies that strengthen the island’s economy, encourage investment, and support local business growth.
While recognising the need to address Guernsey’s long-term fiscal challenges and maintain sustainable public services, the GRG believes that the island’s future prosperity will depend not only on how revenue is raised, but also on how economic activity is encouraged and supported.
A survey of retailers this summer demonstrated the breadth and strength of concern about the possible tax reforms, with the introduction of GST the flagship proposal:
- 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.
Further data and observations from the survey results, and other information is covered in more detail in the letter.