Guernsey Tax Regime Review Continues
Guernsey’s Policy Council has received a draft report that considers the future of the island’s personal tax, pensions, and benefits systems.
The report was jointly prepared by the Treasury and Resources Department and the Social Security Department, with a final report expected in February.
Guernsey’s ongoing review seeks to ensure that the island’s personal income tax regime continues to be internationally competitive. The review forms part of a larger rethink of the island’s budget position and the tax regime’s structure to ensure that the island’s policies are sustainable in the medium to long term.
Although Guernsey is also considering the introduction of a Goods and Services Tax (GST), the report does not delve into the proposals. Instead, the Treasury and Resources Department will be tasked with a separate review of the implications of potentially introducing such a tax.
Guernsey’s Minister for Treasury and Resources, Gavin St Pier, said: “The joint boards believe that in the long term there may be a place for a GST-type tax in our tax system, and it should therefore remain on the table as an option. But at the same time we recognize that there would be a lot more work required before the States could be asked to make a definitive decision. For example, we would need to do more work to understand the true costs for the community, business, and Government of its introduction, and to have a clear view as to what steps could be taken to mitigate any of the impacts of its introduction. We don’t want to waste time and public resources in further exploring those issues unless we know the States agrees with us that we should continue to be open-minded and keep looking at it as an option.”
Source: lowtax – Guernsey Tax Regime Review Continues
