Call on States to provide more detail on GST plans

Guernsey's Chamber of Commerce has asked for feedback from businesses and more clarity from the government on the impact of social security contributions planned as part of a new tax.

The States of Guernsey agreed changes to its tax policy which would see the introduction of a 5% GST, lower income tax rates for earnings under £32,400, higher income tax allowances and reforms to social security contributions - known as the 'GST Plus' package.

The island's Chamber of Commerce said it had met States officers to understand the proposed changes and also asked for a breakdown of the £17m additional employer cost and changes to contribution rates, allowances and income base.

The States of Guernsey has been approached for a comment.

Diane De Garis, treasurer for the Chamber of Commerce, told BBC Radio Guernsey: "We've been pushing for the information and we decided to go out with a member briefing so we don't leave it too late to highlight the social security aspect.

"We're putting on lots of other different events to educate our members about how GST will work."

The briefing focused on social security contributions, business cost impact, timing and phasing, GST design issues and engagement and next steps.

The Chamber of Commerce added the proposal kept the "headline structure similar" but there would be changes to how much under-pension-age people would pay dependent on income and there would be more cost to employers.

Its officials estimated about £17m extra per year would ultimately come from employers through higher social security contributions but they wanted a breakdown of how this would be implemented.

De Garris added: "We need clear direction from the States, we need the detail behind the numbers so we fully understand it and we have confidence in policy decisions.

"We have been talking to the States for a very long time about this and they hear us, they understand our concerns about this but we aren't getting a clear breakdown of the detail."

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