Businesses warn of 'dramatic' impact of tax reform

Andrew Eggleston said the majority of respondents to a survey opposed tax reform

Business leaders in Alderney have said that the States of Guernsey should increase an existing tax, rather than introduce a goods and services tax (GST) in order to raise revenue.

Andrew Eggleston, president of the Alderney Chamber of Commerce and estate agent, put forward a letter to the chief executive and members of the States opposing the introduction of GST.

He said the opposition came from a survey where the majority of respondents said they were against GST.

The States was "on track" to debate corporate tax reform and GST by June 2026, the Vice-President of Policy and Resources, Gavin St Pier, said.

Mr Eggleston said there were concerns introducing GST would require new software and a new civil service department.

He said this would not be the case with an existing tax.

"I don't think we should go alone... we need to stay together, we are the Bailiwick of Guernsey not just Guernsey and Alderney."

Mr Eggleston told BBC Radio Guernsey the move would have a "dramatic" effect on business in Alderney.

"I think we are all totally aligned no matter what businesses we're in, the hospitality sector especially are absolutely against, retailers are," he said.

"The average wage in Alderney is far lower than it is in Guernsey, our cost of living is higher than in Guernsey so it's going to have a more dramatic ill effect to all of us.

"We think it's got to be more efficient to tweak an existing tax than just to start a brand new tax."