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The Tax Review

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Policy & Resources Committee - P.2021/97 - The Original Propositions were replaced by the Propositions in the successful Amendment 1. Both sets of Propositions can be read below.

  • Original Propositions

    • The following Propositions are laid in accordance with Rule 17(9) of the Rules of Procedure of the States of Deliberation and their Committees.
    • The States are asked to decide:
    • Whether, after consideration of the policy letter "The Tax Review" dated 20 August 2021, they are of the opinion:-
    • 1. To reaffirm principle 5 of the Fiscal Policy Framework: "The aggregate amount of States' revenue should not exceed 24% of GDP".
    • 2. To agree that the Committees of the States are collectively responsible and accountable for ensuring that States expenditure is limited to the amount necessary to fund public services proportionate to the Island's size and population, and to endorse the intention of the Policy & Resources Committee to establish a sub-committee, comprising a Member from each Principal Committee, and charged with the identification and development of options to reduce expenditure or mitigate the anticipated increase in the cost of public services as set out in Paragraph 4.6.
    • 3. To agree that the existing Social Security contributions system should be restructured such that all contributors are assessed on the same definition of income with the same access to allowances and that the Policy & Resources Committee, in close consultation with the Committee for Employment & Social Security, should develop detailed proposals for the restructure to establish the rates, allowances and limits which should be applied under such a scheme.
    • 4. To agree that any restructure to meaningfully diversify the tax system requires the introduction of a broad-based Goods and Services Tax and that the Policy & Resources Committee should develop detailed proposals including the measures necessary to mitigate its impact on lower income households in the context of a restructured Social Security contributions system.
    • 5. To agree that, in order to secure Guernsey's long-term financial stability, it will be necessary to raise additional revenues but that no significant changes to the tax system should be implemented until the States Assembly considers, as part of the Government Work Plan debate in June 2022, a framework to co-ordinate the work streams that will achieve and fund an affordable government and public services proportionate to the Island's size and population, including the options for reductions in public expenditure and those that support growth in economic output.
  • Propositions (as amended)

    • The States are asked to decide:
    • Whether, after consideration of the policy letter "The Tax Review" dated 20 August 2021, they are of the opinion:-
    •        1.       To note the Tax Review policy letter and direct the Policy & Resources Committee, taking into account the views expressed by Members in debate, to:
    •              i.      Investigate the options for raising additional revenue from corporates, having due regard for the need to retain an internationally acceptable and competitive tax environment
    •             ii.      Undertake a period of extensive consultation and engagement with States Members, the business community and wider public stakeholders; and
  • Amendment

    • AmendmentProposerSeconderStatus
      pdf icon Amendment 1 [201kb]Deputy HelyarDeputy FerbracheCarried
      Pour 37
      Contre 1
      Abstain 1

       

 

 

 

 

 

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P.2021/97 - The Tax Review

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