States 'on track' to debate corporate tax reform

Deputy Gavin St Pier said he had been encouraged by the progress to date

The States is "on track" to debate corporate tax reform and a goods and services tax (GST) by June next year, a deputy has said.

Vice-President of Policy and Resources Gavin St Pier said the committee would present fiscal policy options to the States by the second quarter of 2026.

He said: "There is a lot of work to do but I'm encouraged with the progress that's been made to date."

St Pier did not rule out the possibility of both the corporate tax reform and GST being introduced.

St Pier said: "We absolutely need to see what can emerge of the corporate tax reform and how that then changes the total shape of all the taxes that are coming in and therefore what changes you want to make to the tax system.

"Clearly part of the GST envisages some significant reductions in income tax through increasing allowances and through a new lower rate band.

"So all those things need to be factored in, in terms of the revenue that's needed to fund this."

In 2023 the States twice rejected plans to introduce a GST but in November 2024 deputies voted to work up plans to introduce a GST after rejecting a rise in income tax.