P&R nearing a majority on tax proposals

With a week to go until Guernsey's landmark tax debate, Policy and Resources' (P&R) tax plans have the support of a majority of politicians.

At least 16 deputies have said they will vote in favour of a 3% goods and services tax (GST), lower income tax rates, social security reform, motor tax and savings.

Twelve deputies have stated they will be voting against the tax plans and 10 others have said they remain undecided.

The proposals face 21 amendments, which include moves to create a new committee to look at all States' spending and exempt electricity and water bills in Alderney from any potential GST.

Deputy Liam McKenna said, if P&R's tax plans were defeated, he would force a vote of no confidence in the island's senior political committee.

One of the 21 amendments has lead to Deputy Gavin St Pier, former vice-president of P&R, renewing his calls for the next Lieutenant Governor to pay income tax, after having been been a long-time campaigner to remove the current exemption.

Deputy Haley Camp, who has planned to vote against P&R's plans, has suggested raising more money through taxes on businesses, visitors and taxes on transportation instead of GST.

Guernsey's only established political party Forward Guernsey has issued a statement which confirmed its three elected members, deputies Gavin St Pier, Rhona Humphreys and Tom Rylatt, would support the tax reform package.

The statement read: "We are committed to supporting tax reform that better protected lower and middle-income households, broadened Guernsey's tax base and struck a responsible balance between different sources of revenue.

"While far from perfect, P&R's current proposals represent a difficult but necessary step towards those objectives."

Meanwhile Adrian Gabriel, President of the Committee for Environment and Infrastructure, said he would be unlikely to support P&R's plans since he did not see the point of introducing GST at a rate of 3%.

Guernsey's longest serving politician Deputy John Gollop said he would be supporting P&R's tax reform plans.

He said: "I am in a minority supporting GST and wanting it to be higher for a fairer society, better public services and realistic wages."

"If we had a visionary P&R, they would expand universal care, GP provision, bus services, arts funding and many other things.

"The truth is we need GST to fund civil service pay."

Debate on the package is expected to start on 15 July.

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