05 Oct GRG statement following Tax Reform decision
We recognise that many of Guernsey’s retailers will be disappointed and worried for their business’ future following the States decision to adopt GST as part of the wider package of tax reforms.
Recent business surveys conducted by the Guernsey Retail Group have consistently indicated the level of concern amongst retailers, with the recent survey results providing a serious warning about the potential 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. Data collected by the group indicated 95.4% of respondents saying they have ‘moderate’ or ‘high levels of concern’ over the introduction of a goods and services tax.
The Guernsey Retail Group understands these concerns and remains absolutely committed to supporting businesses and are equally committed to encouraging people to buy locally.
Now that the States has decided to introduce GST, the Guernsey Retail Group’s focus will be on working constructively with government to minimise its impact, address the competitive imbalance faced by local businesses, and ensure that tax reform is accompanied by a credible plan for economic growth.
This must include urgent reconsideration of the £280 de minimis threshold for goods purchased from off-island retailers.
While competition from online businesses is a fact of life, government policy should not compound the disadvantage faced by local businesses that employ islanders, invest locally, occupy commercial premises, and contribute directly to Guernsey’s economy and community.
The Guernsey Retail Group will continue to engage constructively with government and advocate for practical policies that strengthen consumer confidence, improve local competitiveness, encourage investment, support the vitality of the island’s commercial centres, and retain more expenditure within Guernsey.
Fiscal sustainability and economic growth should not be treated as competing objectives. Guernsey’s long-term prosperity depends on achieving both.