Guernsey rejects GST proposal

The possible introduction of GST was proposed in the Personal Tax, Pensions, and Benefits Review. The measure has met with strong local opposition, especially from the retail sector, as the lack of a value-added tax is seen as a key appeal to tourists.

Guernsey’s Parliament has rejected a proposal to introduce a 5% GST rate into Guernsey, which means it will not be following in Jerseys, the other large island forming part of British Crown dependency, footsteps as it introduced GST in 2012. The council ruled out the sales tax by 28 votes to 18, with many believing that GST is not suitable for the Island and its economy despite a predicted £50m revenue generation. However it is yet to be ruled out for the future with many minsters believing the debate will make a comeback.