P&R Will Put Forward GST Alternative

Policy and Resources is working on an alternative set of tax proposal, replacing GST with other revenue-raising measures.

The senior States committee has confirmed it is looking at other options - to avoid a political stalemate.

We reported on Monday there had been talks between P&R and the deputies behind the rejected 'Fairer Alternative' proposal about States Members getting a vote on whether to introduce GST or not.

That came after the States debate was suspended after three days with no conclusion.

It is due to resume on 15 February.

There were protests outside the Royal Court ahead of the debate on tax reforms that include a 5% GST.

P& R says it’s convinced its tax system reforms, with 5% GST, are still the best way forward.

"The Committee remains of the view that its original proposals are the best way to reform the tax system in a way that is genuinely progressive, reducing the burden for those on lower incomes, while raising enough revenue to ensure public finances remain sustainable as demand on health services and pensions increases."

But it will publish by next Wednesday (8 February) an alternative choice to avoid no solution being reached to filling the hole in public finances.

"The Committee is determined to develop an alternative that comes as close as possible to achieve the objectives. It wishes to give the States the best possible choice, and to do what it can to avoid a situation where no decision is made and no solution for addressing the growing shortfall is found."