Guernsey's Policy and Resources Committee proposes a 3% GST, a new vehicle tax, and changes to income and corporate tax rates to close a £50m funding gap. The GST would take effect in 2028, with vehicle taxes ranging £25-£280 annually and a 10% corporate tax rate extended. Income tax for earnings £15,800-£28,000 would be set at 15% and social security contributions would not apply to earnings below £11,222.
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Bailiwick Express · 5 months ago
Guernsey officials discuss that any future increase to the proposed 5% GST would require a two‑thirds super majority under the island’s Reform Law. The introductory rate would be 5% if retail food sales are included, or 6% otherwise, and a 6% rate would be needed to raise about £50 million net. The proposal aims to keep the tax broad and simple to limit future rate hikes.
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Key Takeaways
If approved, the GST will come into force from 2028.
Charges will range between £25 and £280 a year based on weight and emissions.
A 10% rate will be extended for companies.
Those earnings will be taxed at 15%.
No contributions on earnings below £11,222.
Primary source
Read the full article at BBC NewsThis summary was published on VATfaqs.com on 8 June 2026. It relates to VAT developments in Guernsey. The original source is BBC News.
