Guernsey’s Policy & Resources Committee will be giving a presentation and answering questions.
PLEASE COME ALONG – LEARN MORE – ASK MORE. For those unable to attend, simply email your questions to firstname.lastname@example.org and we will pass them on directly to P&R.
Our survey last week understandably produced intense opposition to GST. We are all faced with a critical funding crisis and a GST Package is the favoured option to both raise funds and reduce costs.
Fuller information can be found at ourfuture.gg/tax-review where the executive summary will explain the rationale in detail.
It is important that Chamber Members take some time to examine this information which will give a better understanding to the problems that we are all facing.
We are all in this together so let’s work on this together – and meet together on Saturday.
Some of the key elements that will prove financially beneficial to many include:-
- The introduction of a new 15% rate of Income Tax on income up to £30,000. People will pay a lower rate on all income between the value of the personal and other tax allowances they are entitled to and the £30,000 threshold which would provide a maximum reduction of over £800 a year.
- An increase in the Personal Income Tax Allowance by £600 which reduces the income tax liability of low to middle income households by up to £120 per taxpayer with a further £1,150 gained by applying the same higher allowance in full to social security contributions.
- A progressive restructure of the Social Security Contribution system which reduces the liability of low and middle income households with a headline rate of 8.5% for employees and 8.0% for employers.
- A Goods and Services Tax (GST) at 5% which will form the primary mechanism for raising revenue estimated at £68m.
- A pre-emptive increase in the States Pension by 3.4% and other benefits to reflect the increase in prices anticipated by the introduction of the GST.
- A pre-emptive increase in Income Support rates by 5% to reflect the increase in prices of items in the Income Support “basket of goods” at the introduction of GST.