The Confederation of Guernsey industry has issued recommendations on how to address the shortfall in finances to fund public services.
Following feedback received from its members, the Confederation of Guernsey industry (CGi) is reiterating its call for the States to consider changes in income tax and social insurance reform, a review of corporation tax and an evaluation of some capital projects in order to raise funds to pay for public services.
This follows the decision by the States last week to reject GST along with the other options presented. The CGi would like to see modest rises in the levels of income tax, an increase in the annual fee for businesses, the review of some capital investments and the introduction of a health supplement to generate the necessary funds.
The CGi’s chairman, Dave Newman, said: “We are surprised that the States seems to have passed over income tax as a way forward. We accept that P&R is in a difficult position and no-one wants to see any rise in their personal costs, but income tax and social insurance reform – especially for higher earners – are by far and away the most efficient and equitable way for collecting additional revenues.
“The mechanism for collecting income and health taxes exists, so changes could easily and quickly be introduced without the huge costs of administration for government and all businesses, our members included, that a GST would have required.”
