Guernsey States approve GST planning, and ditch rise in income tax

After four days of debate, Guernsey deputies have finalised the 2025 budget.

The only proposition to fail in this week's debate was one from the President of Policy and Resources Deputy Lyndon Trott to increase income tax by 2% for two years.

He said this would bring in an additional £34m in 2025 and 2026, allowing infrastructure projects to be funded.

It only had the support of ten deputies, while 24 voted against.

Meanwhile, plans to introduce a goods and services tax will be worked on, for introduction in 2027.

20 deputies voted in favour of the GST package, including former P&R President Deputy Peter Ferbrache - who had previously failed to introduce the tax, and was subsequently deposed as senior politician.

Islanders have previously marched against the introduction of GST, and proposals were rejected by States members twice in 2023.

Deputy Carl Meerveld - who has previously voiced his objection to GST - was one of 15 to vote against the move.

"The public have been out there and shown their negative views of GST.

“They fear as I do that as soon as it is introduced, there will be inevitable increases, and that we will carry on overspending what we can really afford, rather than making cuts to live within our means."

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