Income tax increase plans rejected

States members have rejected the option of an income tax increase

An attempt to include a proposal to increase income tax by 3% as part of plans to reform Guernsey’s tax system has been defeated.

Former Chief Minister Lyndon Trott proposed the rise as an option for States members if Policy and Resources (P&R) plans for a GST fail.

He said there is no majority for a GST within the States and he did not want deputies to leave this week without a decision on the island’s future finances.

P&R has proposed a 5% GST, lower income tax rates for earnings under £30,000, social security contribution reforms and higher income tax allowances to fund public services moving forward.

Economic Development Committee Vice-President Steve Falla argued the States should have backed the plans to include a rise in income tax as one of the options for deputies to decide on.

Deputy Sasha Kazantseva-Miller said the States needed to show it could make savings before asking for more tax.

She said: “It’s not the right time to raise such a significant amount of money from our community... I firmly believe we need to do a number of other measures in the meantime to show to the community that we have the mandate and right to raise such significant revenue.”