Deputy proposes alternative tax plan and delay to States debate

Deputy Garry Collins is calling for Guernsey's tax debate to be delayed while States Members consider an alternative package he says would avoid the need for GST.

The Deputy has lodged an amendment, supported by Deputy Haley Camp, which would create a new 'Appropriations Committee' to review government spending, identify savings and examine alternative ways of raising revenue before any changes to the island's tax system are approved.

Both deputies resigned from their respective committees this week - Deputy Collins from Employment and Social Security and Deputy Camp from Economic Development:

Second committee resignation in 24 hours

ED committee reels from resignation

Deputy Collins says his resignation demonstrates his commitment to the proposal, not dissatisfaction with the committee, adding that he would not be able to remain on ESS and sit on his suggested Appropriations Committee.

Alongside the amendment, he's unveiled what he's described as "Plan G" – a package of reforms centred on scrapping annual personal income tax returns and replacing them with a simplified employment tax collected through employers.

His proposals include increasing the personal tax-free allowance, introducing dedicated contribution funds for pensions, health and public services, creating a landlord registration scheme and gradually increasing TRP.

He says the measures would simplify the tax system, reduce administration costs, help lower and middle-income earners and generate additional revenue without introducing GST, motor tax or a territorial tax regime.

His announcement comes as Policy & Resources Treasury Lead renewed calls for States Members to back the government's tax reform package.

Policy & Resources has proposed changes to personal tax allowances and a 3% Goods and Services Tax to help close the island's funding gap.

Deputy Niles was responding to a joint statement from the Institute of Directors, Guernsey International Business Association and the Guernsey Chamber of Commerce urging politicians to make a decision.

‘'Their message is straightforward; the time for decision has arrived. Rejection without a credible alternative is not caution. It is drift and drift has a cost.

‘"he analysis has been done and the business community, representing more than half of Guernsey's workforce, has added its voice. It is now time for the States to act."

The States is due to debate the government's tax reform proposals later this month.

LISTEN: Lindsay de Saumarez tells Island FM what tax reforms mean for you