Guernsey Committee Tells Gov't To Drop Tax Hike Plan
by Jason Gorringe, Lowtax.net, London
23 June, 2017
Guernsey's Policy and Resources Committee (P&R) has called for the Government to reject newly proposed tax plans that it said would increase the tax burden on families by GBP750 (USD953).
The Committee's President, Gavin St Pier, said: "The medium term financial plan sets out an evidenced, realistic, pragmatic, but prudent approach which will see us return to fiscal surplus, without the need for unrealistic or drastic measures. We cannot simply tax our way out of the challenges we face."
"There are a number of amendments [proposed] to the medium term financial plan, some of which P&R is opposing - specifically those that demand a higher tax burden for Guernsey families. The proposals in one of the amendments would amount to an extra GBP28m over the four years of the plan - which amounts to a whopping GBP750 extra tax for each and every of the island's roughly 37,000 taxpayers. This is totally unwarranted and lacks any supporting evidence."
"This Government's first priority has to be to continue to transform itself so that it is less of a cost to islanders, not more. We should not seek to replace the good but tough discipline of expenditure restraint and reform with the easier alternative of taxing more in order to spend more."
Lyndon Trott, Vice-President of the P&R Committee, said Guernsey must maintain its attraction to businesses and skilled persons by maintaining the 20 percent personal income tax rate and the lack of inheritance and capital taxes.
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