Tax reform critical says trade association

The Guernsey Building Trades Employers Association (GBTEA) says tax reform is "critical" to ensure infrastructure projects do not "store up" for the "next generation".

It follows a commitment from the Policy and Resources committee (P&R) to continue with public infrastructure projects, despite a £62m shortfall in finances.

The association said it was "pleased" by the decision but warned the States must "move forward urgently" with its plans for tax reform to keep future building costs down.

Tom Whitmore, GBTEA President, said any delays in infrastructure investment were "quite an irresponsible thing to be doing".

P&R reviewed the States' capital project portfolio after plans to immediately increase income tax were defeated in favour of introducing a GST in 2027.

Mr Whitmore said introducing tax reform would be vital to ensure the longevity of States' building plans.

"We are recognising and supporting the need to ultimately to increase revenue," he said.

"It is critical that the next states moves forward urgently with those tax reforms that the current States has already identified and approved."

Mr Whitmore said infrastructure investment was key for "society to function properly" as it works as an "economic enabler" that helps generate revenue for the government.

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