The introduction of a Goods and Services Tax would severely damage the retail sector and have a detrimental effect on the local community, town centres and the income and economic benefit to the Island, says the Guernsey Retail Group.
The concerns of the Guernsey Retail Group (GRG) follow the announcement that Policy & Resources is to bring a Goods and Services Tax (GST) back to the States for debate as part of the Government Work Plan in October.
The GRG maintains if such a tax comes in, many local retailers could close, resulting in empty shops across Town and the Island. This would further impact on community centres, so the GRG is asking the States to consider alternatives to a tax on consumption.
Korinne Le Page (pictured), Head of Retail Development, said: “We have not yet seen details of the new GST proposals, but having canvassed local retailers, the Guernsey Retail Group has noted significant concerns, particularly from many of the smaller outlets. We believe up to a quarter could close, which would be very harmful for St Peter Port and other centres and naturally reduce the choice for local consumers.
“Our belief is that such a tax completely ignores the value retail brings to the Island. We have recovered well from the pandemic – our shop vacancy rate stands at 6.95%, a consistently improving figure from 13.5% from back in Quarter 1, 2021 – and we also employ 3,779 people, the third largest sector on the Island.”
The GRG is urging the States to consider other measures for raising revenues from the suggestions put forward by Islanders over the past few months.
