Tax Review debate to be held later in 2022
Tuesday, 26 April 2022
The Policy & Resources Committee has agreed this morning that it should bring the Policy Letter on the Tax Review to the States Assembly for debate later in 2022, and not at the July debate as originally intended.
The Committee is finalising an agreement for a review of corporate tax options for Guernsey and Alderney with the preferred bidder. The review will provide a thorough assessment of plausible corporate tax options, looking at what potential they may have to generate additional revenues to fund essential services and whether they allow the Bailiwick to continue to compete internationally or if they would present risks for the local economy.
It is now expected the review will be completed in the summer. As it is important its findings are made available before an informed debate is held, the Committee is proposing to postpone the debate until Q4 of 2022. The Committee is also mindful of the feedback from the community to take into account the considerations around population which are the focus of the ongoing population review, and the delay will allow for this work to be part of the public and political discussion on revenue raising measures.
The Committee believes the debate should be held before the end of 2022. Already, the impacts of the changing population make-up are being felt, putting greater demand on health services and other costs, and there is an urgency in agreeing a long-term solution so that the detailed work on reforming the tax and social security systems can happen. That detailed work to develop and implement any changes that the States ultimately agrees would take some time and so it is not anticipated that the changes would take effect for at least two to three years.