Henley Business School report into GST

The CGi has long maintained its objection to the introduction of a tax on consumption (GST) in the Island.

We believe it will have a detrimental effect on local businesses, be costly to administer and our preference is for a rise in income tax along with other measures through which the States can raise revenues.

In 2014, the last time GST was proposed, the CGi commissioned the Henley Business to produce a report examining the impact of such a tax.

Its conclusions were:

• It is likely to have a very negative impact on some key sectors of the economy, notably retail and hospitality

• As a small and open jurisdiction, and with a large proportion of small and micro businesses, the impact of a GST would have a disproportionate and negative effect on growth and innovation in these important sectors

• GST is a regressive tax as it has a pronounced impact on the consumption and living standards of the lower income.

The report, written by Professor Dominic Swords, is attached and the arguments raised in 2014 are entirely relevant today.

Picture: Bailiwick Express

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