Deputies voice opposition to income tax rise plans

Former Treasury Minister Charles Parkinson is critical of the island's tax policy

A former Guernsey Treasury Minister has criticised plans to temporarily increase income tax by 2%.

Deputy Charles Parkinson said the move would not raise the £34m Policy and Resources (P&R) had budgeted for next year.

He claimed those affected would be able to "move their money through companies to avoid paying more income tax".

P&R President Lyndon Trott said if States members would not back a Goods and Services Tax (GST), the only option was to change income tax rates.

'Different focus'

But Mr Parkinson said: "I'm afraid it's just not going to solve the problem they think it's going to solve.

"The very wealthy on this island can control how much income tax they pay, because they receive their income through companies.

"So the amount they get taxed on is what they take in dividends, they'll just reduce the amount they take out."

Mr Parkinson said there needed to be more focus on reforming the island's corporate tax system.

Anti-GST campaigner Simon Vermeulen said he was willing to back the 2025 budget

Guernsey Party Leader Simon Vermeulen said he was in favour of P&R's 2025 budget.

He commended the "vision for growth" in the proposals and said he would be supporting the plans when they are debated in November.

But former Vice-President of Policy and Resources Mark Helyar criticised the plan.

"This is highly imprudent and based on some significant unknowns, not least investment returns and the amount to be collected from changes to corporate tax," he said.

"If we harm our economy by a knee jerk tax rise we stand a substantial risk of making things significantly worse, and starting a cycle of irreversible decline."

The Guernsey Hospitality Association, led by President Alan Sillett, has campaigned to freeze alcohol duty following a similar move in Jersey

The move to freeze tax on alcohol has been welcomed by the Guernsey Hospitality Association (GHA).

GHA President Alan Sillett said: "It's good they listened to our case, so lets hope this gets pushed through by deputies when it reaches the rest of the States."

He called on the States to continue to freeze the duty for the next few years to encourage more people into local bars and pubs, and to steer people away from buying booze in supermarkets.

Commuter Robbie Shutey said he would be happy to pay more tax if it meant investment in public services.

Commuter Robbie Shutey said he would be happy to pay more tax if it meant investment in public services.

But he said he was unconvinced by the States reputation when it came to spending money well.