Deputy Rob Ward’s amendment would have seen GST on luxury cars, defined as those costing above £30,000, rise to 10% from 5%, with the money generated, estimated to be £712,000, directed into the Climate Emergency Fund.
But the States voted against the move by 33 votes to 14.
His proposals also called for Treasury Minister Susie Pinel to put together a report on decreasing GST on eco-friendly items, such as solar panels, electric bikes, insulation and double glazing.
This move was accepted by Members by 38 votes to eight.
Deputy Ward said that work needed to start urgently on considering measures to raise money to tackle climate change.
‘If we are going to make changes, then we are going to have to cost them. This amendment is about starting this process now,’ he said.
He added that the move to tax high-end cars would not have had an impact on lower-income Islanders like fuel duty hikes would.
Deputy Pinel said she had ‘some sympathy’ for the proposals, but felt they were ‘flawed’ and that emissions duties, which are already in place, were a more effective measure for tackling pollution.
‘I believe the more coherent policy is to tax the more polluting vehicles,’ she said.
‘I don’t think it is this Assembly’s place to nag Islanders on which cars to drive unless it correlates with government policy, such as reducing pollution.’
Deputy Kirsten Morel lodged an amendment to Deputy Ward’s amendment calling for cars weighing more than 1,950kg to be charged 10% GST.
‘Time and time again I come across hedgerows scarred with tyre tracks by vehicles that are too large for our lanes,’ he said.
‘And by taking the innovative path of taxing vehicles by weight, you are taxing vehicles by how much carbon they require to move.’
The proposal was defeated 38 to nine, however.
Deputy Morel’s amendment also proposed adding air-source heat pumps to Deputy Ward’s list of items from which the removal of GST would be investigated. This was approved by Members by 39 votes to eight.
