States looking for support on new tax

GST is expected to be introduced in Guernsey in 2027

Guernsey's States is looking for companies to help support the administration of a goods and services tax (GST).

Deputies approved a 5% GST last year, alongside a lower rate of income tax for earnings under £30,000 and reforms to social security contribution rates.

A vote on whether the new tax should include food is expected early next year.

Companies have until Monday to reply to the tender from the States of Guernsey.

The States of Guernsey said it wanted insight into available solutions, timescales, costs and procurement from suppliers with the relevant experience and capability.

It has estimated the cost of administering GST would be £800,000 per year.

The administration of the scheme is expected to be split between the revenue service for the primary administration and the Border Agency in relation to the application of the tax to imports.

Policy and resources member, deputy Charles Parkinson, recently said work on the introduction of a GST would not stop while a review of the island's tax system was ongoing.

He added the review would not be looking at changes to capital gains or personal income tax.

Deputy Charles Parkinson is leading a review of the island's corporate tax policies

Experts have been appointed to work on the tax review with deputies Parkinson and Gavin St Pier.

The States has said the experts would be paid but the figure they would receive was not yet known.

It is expected deputies will vote on whether to move forward with plans for a GST before the end of June next year.