A DECISION on whether Guernsey should introduce GST – a proposal which has sparked mass protests and years of political division – has been delayed until at least the end of September, after the island’s States Members ran out of time for the crucial vote.
Deputies rejected a proposal to continue the sitting on Saturday, meaning discussion on the tax package will resume when the Assembly reconvenes on 30 September.
If eventually approved, GST would be introduced in 2028 – two decades after Jersey brought in its own tax following fierce political rows and large-scale public protests.
The intention of the tax was to address lost corporate revenues when zero-ten was introduced. Now firmly embedded in Jersey’s tax system, £122m was raised through GST last year, while the 2026 Budget forecasts that figure will rise to £132m, accounting for around 10% of the Island’s total tax take.
Guernsey also pondered a consumption tax of some sort to lessen the blow when it made its own change to corporation tax in 2008, but ultimately hesitated.
With the proposal returning to the table in more recent years, the island has also seen thousands of people demonstrate against GST.
The latest protest on 15 July – days before the debate which had been expected to finally draw the matter to a close – saw hundreds crowd the steps of the island’s Royal Court, subjecting Guernsey chief minister Lindsay de Sausmarez to jeers of “shame on you”.
Starting last Wednesday, the three-day debate saw 27 amendments lodged, although fewer than half were debated, with some members accusing opponents of attempting to delay proceedings through filibustering.
