'No easy solutions' in reforming islands' tax

An increase in income tax was previously rejected in favour of GST

"There are no easy solutions, all have downsides," said the Vice-President of the policy and resources committee, Deputy Gavin St Pier, following concerns about introducing a goods and services tax (GST).

Andrew Eggleston, president of the Alderney Chamber of Commerce and estate agent, wrote a letter opposing the introduction of GST and suggesting increasing income tax.

In response St Pier said the States "must continue to pursue economic growth, press down on public expenditure and look at other reforms, including how corporate profits are taxed".

He added: "While increasing income tax seems like an obvious, quick fix, like every option, it comes with a number of problems."

St Pier said an increase in income tax was previously rejected in favour of GST.

He said a rise in income tax would increase over-reliance on the taxation of personal income and the burden for younger generations in work.

Last week, St Pier said the States was "on track" to debate corporate tax reform and GST by June 2026.